Fox asks, “Where’s the tariff inflation?” It’s in the coffee Americans are drinking.

Prices have increased drastically in recent months, even before 50% tariffs on Brazilian coffee took effect a week ago

Fox Business host Jackie DeAngelis reacted to this morning’s release of the July CPI inflation report by denying that President Donald Trump’s tariffs are contributing to inflation, asking, “Where’s the tariff inflation?"

But the answer can most easily be found in the cup of coffee countless other Americans likely drank this morning.

Video file

Citation

From the August 12. 2025, edition of Fox News' Fox & Friends

As shown by Bloomberg’s financial products chief economist Michael McDonough, the three-month annualized percent change for the price of coffee is a sky-high 25.9%.

Over the past year, the average price of coffee has climbed by 14.5%.

After President Donald Trump paused his disastrous global “Liberation Day” tariff reveal just days after announcing them in April, they went into effect with lower but still quite high rates on August 7. This includes a 50% tariff on coffee beans from Brazil, the world’s largest producer of coffee, which spiked coffee prices even higher when Trump announced them in July. And with the tariffs on Brazilian coffee now in effect, the price of coffee will only get higher.

In a Washington Post opinion piece, La Colombe co-founder Todd Carmichael explained that this will impact the wallet of every American:

Though some farmers are finding success growing coffee in the microclimate of Southern California, American labor costs and limited production keep California-grown coffee at a price point that most Americans simply cannot afford.

Despite that, the United States is the largest coffee-consuming nation in the world. And an enormous amount of work happens after the coffee leaves the farm: importing across oceans, processing and grading, transporting to roasters, roasting to bring out flavor, packaging, and finally preparing, brewing, selling and serving it to millions of people every day. Coffee farming might start in the tropics, but the coffee industry inside U.S. borders is massive.

For decades, coffee entered the country duty-free, a recognition of its foundational role in a U.S. industry that supports more than 1.7 million American jobs. That exemption is now gone. In April, the Trump administration implemented a 10 percent baseline tariff on nearly all imported coffee. This month, it raised tariffs on dozens of trading partners, with coffee-producing nations India, Indonesia and Vietnam facing sharply higher rates. Coffee from countries with strong trade agreements with the U.S., including Mexico and Colombia, remains exempt, for the most part. Yet Brazil, the world’s largest producer of coffee, was slapped last week with a 50 percent tariff. Brazil provides about 30 percent of the coffee consumed in the United States, so this will massively impact both coffee prices and the industry within U.S. borders.