Tariffs on imported coffee beans impacts coffee shops in San Diego
SAN DIEGO (NBC, KYMA/KECY) - If you're big a coffee drinker, then you might have already noticed prices on your daily coffee run have gone up.
That's because tariffs on numerous imported products went into effect earlier last month, including coffee beans.
Cafeina Cafe has been in business in San Diego along 46th Street in City Heights for about six years now.
There was a steady stream of customers in the few hours Sunday morning, and two baristas were holding down the fort.
The coffee they're making is yet another product on the list of goods that were slapped with tariffs in early August, all the way up to 50% depending on the country.
"10% is what we're currently getting taxed on," said Andrew Benavidez, the cafe's owner. "Everybody. Everybody across the board. Everyone's feeling it."
He heard through the grapevine about the tariffs last year, and now that they're in effect, he says, "That means prices for consumers...it goes up."
99% of the coffee Americans drink is imported. One of the blends, for example, is from El Salvador and Honduras.
The latest inflation report from July shows the average retail price of roasted coffee went up a little more than 14%, which was before the tariffs.
Cafeina Cafe gets its coffee through direct trade with producers.
You would think that means it's ultimately cheaper, but Benavidez says that's not the case.
"A lot of it has to do with buying power, and also the farmers-producers, they set their own rates, right? So they have to negotiate with the farmers that they work with back at the origin, and they produce great coffee, so they can bump up the price," he shared.
You've heard the saying money doesn't grow on trees, but in this case, technically it kinda' does, because coffee grows on trees, but only in very particular climates.
The only place that we have those tropical-like conditions that are conducive to growing coffee is in Hawaii and Puerto Rico, and they also grow coffee, but not nearly as much product as countries along the equator.
Despite having to pass on the cost to customers, Benavidez remains optimistic about the future of his business. He's also grateful to his regulars who continue to show up.
"I think customers also understand but at the same time it's not fair," Benavidez expressed.
The only exception to this latest round of tariffs is Mexico. That's because their coffee is already taxed through the U.S.-Mexico-Canada Agreement, also known as the USMCA.
