Caffeine is a part of our daily routine. From that morning cup of Earl Grey to an evening espresso, days are stimulated by cups of coffee and tea. Over the past year, getting that fix is roasting your wallet.

At Detroit Sip, a coffee shop in the city’s Bagley Neighborhood, owner Jovana Fudge has lent out the space for a campaign kickoff event. She and two employees are working to keep everyone happy and caffeinated.

Fudge says business has been a little inconsistent.

“My God, it’s up and down, to be honest, just trying to find creative ways to bring people in,” Fudge said.

“Everybody loves coffee.”

The National Coffee Association says two thirds of American adults drink coffee at a clip of 3 cups per day.

Fudge, whose day job is as an assistant Macomb County prosecutor, says money is tight.

“I don’t really know I’m going to try to make it through the end of the year. I have a job that helps fund the dream, and I need to keep my employees happy,” Fudge said. “So really, just trying to do a balancing act.”

There’s a lot of that going around within metro Detroit’s coffee community, and the industry as a whole.

Craig Batory, owner of Craig’s Coffee in Detroit’s resurgent Chinatown neighborhood, feels that way. He says prices are up 25-50% over the past year.

“Yeah, I’ve had to raise prices a couple of times in the last year, and that’s just been sort of reflective on the rising cost of coffee,” Batory said. “And that’s not even talking about the tariffs, right?”

About those tariffs, the biggie for coffee drinkers is a Trump Administration levy on imports from Brazil. The South American country is the leading provider of coffee beans in the U.S.

Batory says he’s covered—for now.

“I still have inventory from Brazil, but when that runs out, we’ll have to either figure out a different sourcing option or set our prices accordingly, based on the cost of the coffee rising by 40% the last year and the 50% tariff,” Batory said.

“So you’re looking at potentially a 90% increase.”

Not just tariffs

Coffee prices were rising before the on-again-off-again tariffs.

Frank Lanzkron-Tamarazo moves about 60,000 pounds of beans each year through Chazzano Coffee Roasters in Berkley. He’s spent years developing relationships and sourcing his beans directly from farms.

“So the tariffs really aren’t the problem, and they’re only a temporary problem,” Lanzkron-Tamarazo said.

Turns out there are a bunch of factors that go into that cup o’ joe.

“There are not enough truck drivers, there are not enough workers in in warehouses. There are not enough people picking coffee beans, and there are not enough containers to put the coffee beans in,” Lanzkron-Tamarazo said.

That’s on top of changes to growing conditions due to climate change and changing political climates in coffee growing nations. At Chazzano, that’s translated into a $2-3 per pound increase.

Lanzkron-Tamarazzo says after 15 years in the business he’s used to the ups and downs.

“I lived through a time when coffee prices were unnaturally low, just maybe like three or four years ago, where it was so low that I was worried about the farmers, whether they’re doing well enough during that time, it was so incredibly low,” Lanzkron-Tamarazo said.

So while the tariffs aren’t the focus for rising coffee prices, Craig Batory says there is some concern about the levies changing the habits for coffee growers and importers.

“Tariffs have made certain countries sort of shift where they’re selling their coffee. So a lot of countries like Brazil might start shifting their sales from the United States to China, because a lot of Asian countries are starting to consume more coffee.”

Those Asian countries also consume a lot of tea—which has largely avoided the price increases.

Though there’s one big exception according to Jeff Urcheck, a Detroit-based importer of high-end teas for restaurants and coffee shops.

“The past few years have really skyrocketed matcha, in particular, into everybody’s social media algorithm because it’s been such a huge trending health and fitness focused product as an alternative to coffee,” Urcheck said.

Through his company, Hamtramck-based Noka Imports, Urcheck says the politics—even outside of tariffs—hurts his business.

“So it’s not really viable for us to deal with tea from China, because there hasn’t been an administration in the past like, well, frankly, during my entire lifetime, who’s been amenable to non-aggressive foreign policy when it comes to China,” Urcheck said.

Urcheck says America First attitudes don’t work for things that won’t grow in the U.S.

“If you’re having a bunch of inconsistent—and frankly maladaptive—trade agreements that are just there to be some kind of a bullying flex on a market that is increasingly reliant on globalization and global trade, you’re kind of putting yourself in a losing position,” Urcheck said.

“We can’t get or make a lot of stuff here. We don’t have the climate for it. We don’t have the natural resources for it. So we are we have to import a lot of stuff.”

So while the initial impact of seemingly arbitrary and constantly changing tariffs isn’t the biggest driving factor for prices it’s still having an impact.

“Smaller businesses, including the ones that I work with… just everybody’s been really kind of stalled and nervous about how these tariffs are going to affect the consumer demand, but also the longevity of their own businesses,” Urcheck said.

Getting creative

Even through this time of higher prices, there’s a thought that independent roasters and importers can provide something that chains like Dunkin’ and Starbucks cannot.

“I think that consumers are going to start being a lot more thoughtful about how they’re spending their money. So the focus right now is to provide a good quality bean, a good quality cup of coffee. And, you know, focus on what our messaging is like. We provide sustainable, traceable coffee, we roast it with care, and we want to make sure that our consumers are have something that’s enjoyable for them to drink,” Batory said.

At Chazzano, Frank Lanzkron-Tamarazo ships out coffee beans to every state in the nation. He feels like he’s threading the needle when it comes to prices.

“There’s an axiom that if you raise your prices and everyone complains, then it’s too high, and if you raise your prices and and no one complains, then it’s too low, and a couple people complain then it’s perfect. And unfortunately for the consumer, no one has complained.”

Back at Detroit Sip, that’s something Jovana Fudge has been thinking about even as she’s been hesitant to adapt to the current coffee market.

“I haven’t raised my prices really like I need to, because I have to balance my customer base and what’s happening in terms of inflation, the increased prices, the tariffs, hoping that they will reach some sense of normalcy before, you know, passing that cost on to the customer. So for right now, I’m eating it,” Fudge said.

Since the pandemic, consumers have been eating the cost of higher food prices too making this rise in coffee prices even tougher to swallow.