Dubai – Qahwa World
Following the repeal of coffee tariffs imposed by the former U.S. administration, the specialty coffee scene in Portland, Oregon, has seen little immediate recovery, as high operational costs continue to pressure independent cafés and roasters.
Portland, often cited as a cornerstone of America’s coffee culture, is grappling with a steep rise in coffee prices, compounding financial strain on small businesses. Even with the official removal of the 10% reciprocal tariff—initially imposed in April—the lag time in the global supply chain means high costs will persist for months.
Laila Ghambari, who owns Guilder Coffee Company, highlighted the immediate pressure, noting that specialty coffee bags on their shelves retail for as much as $28.50. “That is a significant price point for a bag of coffee,” she stated, explaining that although the duty has been revoked, all inventory already imported into the U.S. remains subject to the prior tariff structure. For her business, this small duty added approximately fifty cents to the cost of each bag.
This tariff burden arrived amid an already turbulent market. Global coffee prices were already climbing due to intense demand for high-quality beans and severe weather events, such as crop-damaging frost in key growing regions. The U.S. retail price for 100% ground roast coffee reached a historic peak of $9.14 per pound in September, according to figures released by the Federal Reserve Bank of St. Louis—a stark contrast to the pre-pandemic average of just over $4.00 per pound in late 2019.
Christopher Hendon, a chemistry professor at the University of Oregon and a respected coffee industry analyst, suggested that the tariffs disproportionately affect small operators. While the slight cost increase may not deter the average consumer, he cautions that the tariffs threaten the viability of local establishments. “The consumer probably isn’t feeling a huge difference right now,” Hendon commented. “But they will certainly notice if their neighborhood café is forced to close its doors.”
For local roasters, the financial impact has been severe. Charlie Wicker, who runs Trail Head Coffee, described the toll the tariffs took on his roasting operation. He was forced to downsize his staff, reducing his workforce to just himself and one part-time employee. “The fact that we are still operating is solely a result of having some accumulated savings to keep the lights on,” Wicker shared.
The coffee supply chain, which often requires roasters and cafés to place orders many months in advance, means that economic recovery will be slow to materialize. Ghambari estimates that Guilder Coffee will not see its first shipment of genuinely tariff-free coffees arrive at their warehouse until February.
For business owners like Wicker, the eventual arrival of these lower-cost imports is crucial. The reversal of the duties represents a much-needed lifeline that will allow small businesses to reinvest and stabilize their operations in the coming year.
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