Latest Batch, Government Meddling, and Tariffs

Latest Batch, Government Meddling, and Tariffs

Hi everyone! Our latest extra large batch of coffee has landed in the USA! In fact, it landed last week, but was subject to a random USDA inspection.... this despite the fact that the USDA does not normally oversee roasted coffee -- go figure. As a result, the shipment was delayed, and we were assessed a 'cargo storage' fee by DHL exceeding $1,000. Fortunately, the USDA 'hold' has now been removed, and we're just waiting for the coffee to get loaded onto a truck and delivered to us. This should occur in the next couple days, but we're still waiting for DHL to provide the final delivery date. 

On the subject of government interference, I'm sure everyone is aware of the newly established import tariffs. As a result, coffee prices are going to be increasing everywhere. These tariffs apply to roasted and unroasted coffee from virtually every country in the world. It's possible that some domestic roasters will be able to absorb these increased costs thanks to high profit margins. However, as we are an importer and reseller (not a roaster), we operate on very small profit margins which would be all but wiped out by these tariffs. As a result we must pass on these costs to the final customer (sorry!). 

On the batch that's about to arrive we were assessed a 10% import tariff, and this may increase to 20% in the next 90 days. Given the fickle nature of these tariffs, we've decided to add a line item to each product to collect an appropriate amount to cover these increased costs. As I'm sure you're aware, when prices go up they rarely go back down, even if the underlying factors that caused the increase are no longer applicable. So, we're choosing to be transparent with these costs rather than just raising prices. If the tariffs go up this amount will go up, and if the tariffs are removed, this line item will no longer be collected. Please note however that the cost of green coffee has also been increasing irrespective of tariffs, so there may still be price increases in the future. 

Thank you for bearing with us while we weather these challenges -- we're committed to making this wonderful coffee available in the USA, and we really appreciate all of you!!

-Matt


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