Major Price Hikes Expected for Coffee, Wine, Chocolate, and Butter
A sweeping new set of tariffs announced by former President Donald Trump is raising alarm among international trade groups, small business owners, and consumers. Experts warn the move could significantly raise the cost of imported goods across the United States, from Irish butter to your favorite coffee house’s espresso and drip coffees.
Trump announced his plan to impose two different types of tariffs on April 2, a day he calls “Liberation Day.” The first tariff is a standard 10% tariff on all imported goods, and the second is what Trump calls a “reciprocal tariff” on any one of the 60 nations that have levied on imported U.S. goods in their countries. The 10% tariff is scheduled to begin at 12:01 a.m. on April 5, while the reciprocal rates will become effective at 12:01 a.m. on April 9.
Trump has stated that tariffs would be imposed on nations importing goods into the country, but they will actually increase prices for importers and consumers.
According to the Irish Farmers’ Association, Kerrygold Butter is currently the second most popular butter brand in the U.S. The group said Irish food and drink exports account for roughly 11% of the nation’s total exports, and the new tariffs could deeply disrupt market access. French butter like Bordier and Buerre de Barate, favorites among bakers and fine dining establishments, would also increase in price.
Trade volumes from Europe to the U.S. had been surging in the months before the announcement. Between January and November of the previous year, more than 236,000 tonnes of EU dairy products had been shipped to American buyers, the highest since European Commission records began in 2010. EU wine exports to the U.S. were also up 18% in November, with importers reportedly stockpiling ahead of anticipated tariffs.
The U.S. Wine Trade Alliance (USWTA) advised members last month to halt shipments of wine, beer, and spirits from Europe due to the unpredictability of new customs policies. “There is no guarantee of an exception for goods already in transit,” said alliance founder Ben Aneff.
Natural wine importer Jenny Lefcourt echoed concerns in a recent op-ed, noting the ripple effect on logistics companies, distribution workers, restaurants, and retailers. “Everyone from truck drivers to chefs could see their jobs threatened,” Lefcourt wrote.
Even American wineries are sounding the alarm. California winemaker Adam Lee said the tariffs could prevent domestic distributors, who rely heavily on imported wine, from purchasing local bottles due to the sudden financial burden. “If tariffs hit 200%, our partners could owe hundreds of thousands in additional taxes,” Lee said.
And it’s not just wine or dairy. Coffee, a staple commodity that the U.S. overwhelmingly imports is now in the crosshairs. Although the U.S. does not grow coffee on a large scale, it imported $8.2 billion worth of beans tariff-free in 2023. Under the proposed rules, import duties could reach up to 45% for coffee from Mexico and 10–15% for beans from Colombia, Honduras, and Guatemala, according to Peter Bay Kirkegaard of the Confederation of Danish Industry.
The National Coffee Association (NCA) warned that such tariffs could be catastrophic. “Coffee cannot grow in most of the U.S.,” the group said in a statement. “Tariffs would threaten over 2.2 million U.S. jobs and a $343 billion industry built around coffee imports.”
Other widely consumed imports, such as chocolate and whisky, are also likely to see price hikes. Products from France, Italy, and Scotland—including wines and spirits—will face a 20% duty. Meanwhile, cocoa exporters like Cote d’Ivoire and Ecuador will be subjected to tariffs of 21% and 10%, respectively.
While Trump argues the tariffs will protect American industries, critics warn that they may instead drive up costs for U.S. consumers, businesses, and even domestic producers who rely on international partnerships. Aneff summarized the sentiment bluntly: “These tariffs are great for Canada and China. But they’re terrible for the United States.”
