Bad news for coffee lovers, all signs point to an imminent price hike in the U.S.

First it was eggs and now it looks like coffee is the latest daily commodity that is poised to take a surge in price.

The root of this price hike is twofold and initially connected to the cost of wholesale arabica beans which surpassed $4 a pound for the first time earlier in February and this price represents double of what they cost 12 months ago.

The price indeed rose to a record $4.30 a pound on February 13 and coffee lovers have been advised that they can expect to pay more for their fix in the forthcoming months.

Global warming to blame

Rising global temperatures, droughts and excessive rains which struck both Brazil and Vietnam, two of the world’s two biggest coffee producers have impact on supply.

Last year’s coffee growing season was hampered by drought followed by a freezing August in Brazil and after suffering a long term drought, Vietnam was then plagued by heavy flooding which all impacted on the coffee harvest.

When the Brazilian crop is impacted with the nation supplying almost 40% of the global coffee supply, the shortage will inevitably lead to a knock on effect which leads to an increase in prices.

Trump tariffs

Foreign coffee suppliers also warned of price hikes in a response to any tariffs imposed this week by U.S. President Donald Trump’s administration.

A representative from Italian Illycaffe stated: “duties will be passed on to the final price... we, as I guess other players, are evaluating in what percentage” adding that “the industry’s margins are already under pressure due to raw bean price increases”.

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