Paramount Coffee Raises Prices Amid Soaring Tariffs and Bean Shortage

Paramount Coffee Company, one of the Midwest’s largest coffee roasters and distributors, has increased prices due to rising import tariffs and a global coffee supply crunch. The U.S. government’s 10% tariffs on imported goods, including coffee beans, are compounding cost pressures across the industry, even though the country cannot grow coffee domestically.

In an email to clients dated May 20, Paramount cited recent government tariff decisions as the reason for the price hikes, noting that these actions have “significantly impacted our costs, making price adjustments necessary.” The company did not disclose the exact rate of the price increase and has yet to respond to further inquiries.

Coffee bean prices surged 70% in 2024 following severe weather disruptions in key growing regions. Prices have climbed another 15% in 2025, placing additional strain on roasters and retailers.

The National Coffee Association has appealed for a tariff exemption, warning that the current policy threatens the viability of U.S. coffee businesses. The request remains under review by federal officials.

Adding to the industry’s concerns is the looming threat of reinstated reciprocal tariffs, including a 46% duty on imports from Vietnam, the world’s second-largest coffee producer. These suspended tariffs could resume after July 9 if trade talks fail, potentially triggering further price hikes and supply chain disruptions.

As the world’s largest coffee consumer, the U.S. is particularly vulnerable to volatility in global supply chains. With rising costs and policy uncertainty, both businesses and consumers may soon face higher coffee prices at home.