US Tariffs Hit Coffee Company Hard

U.S.-China Trade War Brews Trouble for Businesses, Consumers Feel the Pinch

By Archyde News
April 10, 2025

From multinational giants to Main Street mom-and-pop shops, the specter of a full-blown trade war between the U.S. and China is casting a long shadow over the American economy. The ripple effects of escalating tariffs are already being felt, impacting businesses of all sizes and threatening to hit consumers where it hurts: their wallets.

The latest salvo came yesterday, April 9, 2025, when President Donald Trump announced a 90-day pause on some of the initially proposed higher tariffs, dialing them back to a baseline 10%. Though, in a move that underscores the volatile nature of the situation, he together ratcheted up tariffs on Chinese goods to a staggering 125%.

This whipsaw effect has left many businesses reeling, struggling to adapt to the rapidly changing landscape. The uncertainty is particularly acute for companies that rely on trade with China, whether importing goods or exporting American products.

Brady’s Coffee: A Case Study in Trade War Uncertainty

One such business caught in the crossfire is Brady’s Coffee, a company based in Wicklow Town, Co Wicklow. (It is an imported case,though,since the business is not originally based in the U.S.) co-founder Craig Brady, who established the business in 2017, now employs 15 people. The U.S. market has become increasingly vital to Brady’s Coffee, representing roughly a quarter of its total revenue. Their coffee products are now available across all 50 states, a testament to their prosperous expansion into the American market.

However, the escalating trade tensions have thrown a wrench into their carefully laid plans. According to Mr. Brady, “We had a very strategic plan for this year about what we wanted to do in america, and all of it is on hold.” He emphasizes the importance of the U.S. market to his company’s growth, stating, “It’s part of our strategy for growing the company, and we’ve invested heavily in equipment and production to manage the growth over in America. So it is indeed a vital part of what we’re doing.”

The initial declaration of tariffs by President Trump came as a complete surprise to Brady’s Coffee. Adding insult to injury, a 20% tariff was subsequently slapped on their products.

It came as a little bit of shock because you can’t grow coffee in north america. so, we all felt that we would avoid the tariffs. It’s not something they can bring home production to.

Craig Brady, Co-founder of Brady’s Coffee

Mr. Brady’s initial reaction was one of disbelief. I wasn’t expecting it, if I was honest. I’ve been on the back foot a bit since we heard.

Craig Brady and Catherine Murphy of Brady’s Coffee

Price Hikes Loom: Consumers to Bear the Brunt?

The tariffs are expected to trickle down to American consumers, resulting in higher prices for everyday goods. Brady’s Coffee is no exception. Mr. Brady anticipates that the cost of his coffee will increase, ultimately affecting U.S. consumers.

He predicts that a 227g tin of brady’s Coffee, typically priced around $16, could jump to as much as $22. This potential 37.5% price increase raises concerns about the impact on sales.

That is a concern for sales. But we are a premium product in America. so, we’re hoping that it can take the price rise. We’re hoping we can get through this and come out the other side.

Craig Brady, Co-founder of Brady’s Coffee

Beyond the immediate price hikes, Mr. Brady highlights the broader issue of uncertainty, which he describes as the most risky thing you can deal with. He elaborates, We’ve dealt with rising coffee prices over the past year – that’s something we can deal with, but the uncertainty is something where it really makes people nervous.

This sentiment resonates with many business owners across the United States who are struggling to make long-term plans in the face of unpredictable trade policies. The fear is that this uncertainty will lead to decreased investment, slower job growth, and ultimately, a drag on the American economy.

The impact of this trade war extends far beyond coffee. Consider the American automotive industry, which relies heavily on imported parts from China. Tariffs on these parts could drive up the cost of manufacturing cars in the U.S., potentially leading to higher prices for consumers and job losses in the auto sector, impacting major players like Ford and General Motors.

Similarly, the electronics industry, dominated by companies like Apple and Samsung, relies on China for manufacturing and components. Increased tariffs could force these companies to raise prices on popular devices like smartphones and laptops, impacting consumers and potentially dampening demand.

supply Chain Disruptions and Future Orders in Question

Brady’s Coffee is currently preparing to ship a significant order to the U.S. next Tuesday. An even larger order is scheduled for the summer. However, the future of these orders is now uncertain. We’ve got our largest order ever due at the end of June, and we’re unsure if that order is still going to go ahead. We’re in discussions at the minute about it, Mr.Brady explained.

These supply chain disruptions are a common concern among businesses engaged in international trade. The tariffs can create bottlenecks, increase costs, and ultimately make it more difficult to get products to market. This can have a significant impact on both businesses and consumers, leading to delays, shortages, and higher prices.

Seeking Solutions and Potential government Support

Like many business owners, Mr. Brady is unsure when or if this trade war will end. He emphasizes the need for a swift resolution and suggests that government support might potentially be necessary if the situation persists. I don’t know what the end solution to this is.

We can’t be bullied, but there needs to be an urgency to come up with a solution as soon as possible. If there isn’t an immediate solution, they may need to look at supports for business that are exporting to America to help us get through this difficult time.

Craig Brady, Co-founder of Brady’s Coffee

Potential forms of government support could include tariff exemptions, subsidies, or loan programs designed to help businesses weather the storm. The Small Business Administration (SBA), for example, could play a crucial role in providing financial assistance and counseling to businesses impacted by the trade war.

However, the effectiveness of these measures remains to be seen. Many economists argue that the best solution is a negotiated settlement between the U.S. and China that addresses the underlying issues driving the trade war. this would provide greater certainty for businesses and consumers and help to stabilize the global economy.

Expert Analysis and Potential Counterarguments

While the impact on individual businesses like Brady’s Coffee is clear, the broader economic consequences of a full-scale trade war are complex and subject to debate. Some economists argue that tariffs can protect domestic industries and create jobs. However, the consensus view is that tariffs ultimately harm consumers by raising prices and reducing choice. They can also lead to retaliatory measures from other countries, escalating trade tensions and disrupting global supply chains.

A counterargument often raised is that the trade deficit with China is unsustainable and that tariffs are necessary to level the playing field. Though, critics argue that tariffs are a blunt instrument that can have unintended consequences and that a more nuanced approach is needed to address the trade imbalance.

Impact on U.S. Economy Visualized

Sector	Potential Impact	U.S. Examples
Agriculture	Reduced exports, lower prices for farmers	Soybean farmers in Iowa, pork producers in North Carolina
Automotive	higher production costs, increased car prices	Ford, General Motors, Tesla
Electronics	Increased prices for smartphones, laptops, and other devices	Apple, Samsung, Dell
Retail	Higher prices for imported goods, reduced consumer spending	Walmart, Target, Amazon

Looking Ahead: Navigating the Trade War Uncertainty

As the U.S.-China trade war continues to unfold,American businesses and consumers face a period of uncertainty and potential economic disruption.While the long-term consequences remain to be seen,it is clear that the escalating tariffs are already having a significant impact on the U.S. economy.

Businesses need to be proactive in assessing their exposure to the trade war and developing strategies to mitigate the risks. This may involve diversifying supply chains, exploring alternative markets, and seeking government assistance. Consumers, in turn, need to be prepared for potentially higher prices and reduced purchasing power.

Ultimately, a negotiated settlement between the U.S. and China is the best solution to de-escalate the trade war and restore stability to the global economy. Until then, businesses and consumers must navigate the uncertain landscape and adapt to the evolving realities of international trade.

What are the potential long-term consequences for the U.S. economy if the U.S.-china trade war persists?

Archyde News Interview: Navigating the U.S.-China Trade War with Economist Eleanor Vance

Archyde News: Welcome, Eleanor. The escalating U.S.-China trade war has businesses and consumers on edge. for our readers, can you give us a snapshot of the current situation and its impact?

Eleanor Vance: Thank you for having me. The situation is indeed volatile.The recent increase in tariffs, fluctuating between 10% and 125% on various Chinese goods, is creating significant uncertainty. Consequently,we are seeing market turmoil,and businesses are struggling to navigate the shifting landscape.The prices of some goods, consumers are set to see a rise in costs on everyday items. This makes us question, what will be the next step in this ongoing situation which has brought about changes already?

impact on businesses and Supply Chains

Archyde News: We’ve seen examples like Brady’s Coffee, a company facing potential challenges from the trade war. How are these tariffs specifically affecting businesses that rely on international trade?

Eleanor Vance: Businesses are facing a double whammy. First,the immediate impact is on the price of imported goods. This pressures profit margins. Second, the volatility makes it difficult to plan. Supply chains are disrupted, with potential bottlenecks and delays as we have seen with Brady’s Coffee. This situation is creating huge uncertainties within the business plans.

Consumer Impact: Price Hikes and Reduced Spending

Archyde News: So, what can consumers expect? Are we looking at significant price increases due to these tariffs?

Eleanor Vance: Absolutely. The tariffs will ultimately be passed on to consumers in the form of higher prices.This isn’t limited to coffee. The automotive and electronics industries, reliant on Chinese components, are also vulnerable. We might see price hikes on cars, smartphones, and other essential electronics. This, in turn, could lead to reduced consumer spending and perhaps slower economic growth.

Long-Term Economic Consequences

Archyde News: What are the broader implications for the U.S. economy if this trade war persists?

Eleanor Vance: The long-term consequences are complex. While some sectors might initially benefit from protectionist measures, the consensus is that tariffs ultimately harm the economy. We could see decreased investment, slower job growth, and reduced global competitiveness. A prolonged trade war could also trigger retaliatory measures from China and other countries,escalating tensions and disrupting global trade.

Solutions and Mitigation Strategies

Archyde News: What are some potential strategies for businesses to mitigate this economic risk?

Eleanor Vance: Businesses need to be proactive. Diversifying supply chains, exploring alternative markets, and hedging against currency fluctuations are essential steps. Engaging with government bodies to understand available support like subsidies or tariff exemptions. Additionally, businesses must stay informed.

government Role and the Path Forward

Archyde News: What role should the government play in navigating this situation?

Eleanor Vance: The ultimate solution is a negotiated settlement between the U.S. and China that addresses the underlying trade issues. In the short term, the government could provide support to businesses affected by the tariffs. This includes offering financial assistance and exploring avenues for easing the burden of tariffs on American businesses.

A Thought-Provoking Question

Archyde News: Eleanor, looking ahead, how do you see consumers adapting to the changing economic landscape shaped by this trade war?

Eleanor Vance: Consumers will likely prioritize value, potentially shifting their spending habits. Some might delay purchases, look for cheaper alternatives, or become more conscious of the origin and production of the goods they buy.

Archyde News: And what could we do today, as an individual?

Eleanor Vance: Individuals can support local businesses, encourage a dialog with local community leaders, and vote for policymakers that can best deal with trade issues.

Archyde News: Eleanor vance, thank you for insights. It’s a difficult time.For our audience, what questions about the U.S.-China trade war are on your mind? Share your thoughts in the comments below.