- Local coffee shops are preparing for potential impacts from President Trump's trade war.
- Most of RedEye Coffee's beans are imported from other countries.
- Watch the video to learn how tariffs on imported products like coffee could cause prices to spike for local consumers.
BROADCAST TRANSCRIPT:
Despite the Trump Administration's 90-day pause on recent tariffs, small businesses in our community are still grappling with the uncertainty of whether the international imports they depend on will take a blow amidst the trade war. I'm Kenya Cardonne in the Northeast Tallahassee neighborhood. Coffee shops, specifically, are keeping a close eye on developments, as alternative sources for the product are slim.
Max Hansen, General Manager at RedEye Coffee - "Coffee is apolitical. Like, everybody loves coffee. Almost everyone needs a cup of coffee in the morning."
Now, one of the latest concerns: will your daily cup of joe start to cut deeper into your wallet?
The National Coffee Association reports more than 99% of America's coffee must be imported, with every $1 in coffee imports generating $43 of value for the U.S. economy.
Max Hansen, RedEye Coffee General Manager, tells me that South American and African countries source most of the coffee beans this local shop is known for roasting in-house.
Although he says the business has yet to be affected by tariffs, recent inconsistent trends amidst President Trump's trade war suggest coffee prices could spike if the internationally dependent product is slapped with a tariff.
Hansen - "We would obviously have to look at the margins. And unfortunately, for a smaller business like us, those margins are so much smaller than a corporate establishment. So, unfortunately, that probably would cause prices to rise just so we can stay competitive and stay in business."
Hansen explains that a rise in prices could draw customers away from the business.
As other industries affected by tariffs consider sourcing their products and materials from within the U.S., Hansen says our climate isn't one that will stimulate coffee bean growth the way other countries near the equator do.
Hansen - "Unfortunately not. I think it could be grown [in the U.S.], just not in great quantities and everything, and it certainly won't taste as good."
Hansen tells me tariffs on international imports could impact other key products like sugar and vanilla beans, causing a ripple effect that would raise prices all around.
In Northeast Tallahassee, Kenya Cardonne ABC 27.
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