Coffee Craze

Imagine a world where you leave your room, ready for a long day of classes and head to your local coffee shop for a pick-me-up. But when you walk in, the usually crowded space is empty. Due to the increase in coffee prices, many coffee shops have lost many of their customers and you now have to pick between buying a small vanilla latte or paying your monthly rent. Thank goodness we don’t have to worry about such a horrible world, right?

Wrong.

Threat of Tariffs

After President Trump stepped into office, there has been a shift in how America now deals with the economy due to his and the Republican party’s beliefs. For example, according to the New York Times article titled “Coffee and Flowers in Focus Amid U.S.-Colombia Trade Tensions,” when Colombia refused to accept deported immigrants, Trump claimed, “on social media that he would impose tariffs on all Colombian imports.” Such an extreme measure for a problem that Colombia had no part in could negatively affect many Americans, including you.

Consequences

Placing tariffs on Colombian imports would raise the prices of everything that they produce for Americans, including their biggest items such as coffee and flowers. As a result, due to the heavy taxation on importing these now luxurious goods, coffee would now be more expensive to meet the high demand while following the tariffs.

Competing coffee-producing nations like Brazil, India and many Arab countries would later scramble to get their foot in the industry. For example, they might even lower the prices of their exports for America to consider replacing Colombia’s imports with theirs. Though the taste of the coffee might be different, it would be a cheaper alternative compared to following the prices of the tariffs and coffee’s subsequent price raises.

Predictions

Other products may become more expensive due to many of the new tariff policies being established by President Trump as well.

25% tariffs on Canada and Mexico, and 10% tariffs on China…[that] would be implemented Saturday.

Wall Street Journal

Many important exports from the nations, such as crude oil, would also face higher prices for consumers, affecting several million all over the country.

Understanding the importance of tariffs and economic policy can help you make informed decisions about your spending and especially prepare for such large changes in our day-to-day lives. So next time you think about getting coffee, be prepared to potentially make a cup at home!

What are your thoughts on the coffee crisis? How would you react? Let @VALLEYmag know on X!