Coffee shops in Cupertino and San Jose plan to raise prices as new tariffs increase costs across the supply chain, leaving both business owners and customers in financial uncertainty.

The new 10% import tariffs — part of President Donald Trump’s foreign trade policy — took effect on April 5. On April 9, Trump announced additional reciprocal tariffs, but paused them for 90 days for most countries, excluding China, keeping 10% the default rate for now.

This directly impacts the coffee industry; the U.S. imports most of its coffee from Latin American countries, primarily Brazil and Colombia.

“I’m going to have to raise prices in order to keep going,” said Jared Forman, owner of Power Cup, a coffee shop that has been a part of the De Anza community since 2017 and a daily staple for many students.

New Hampshire Rep. Maggie Goodlander, a member of the Small Business Committee, said trade policies impact large businesses such as Starbucks less because they have various suppliers and enough capital to handle short-term losses; smaller businesses don’t have access to the same resources and face greater financial pressure.

At Blvd Coffee, a shop with locations in South San Jose and Los Gatos, manager and the owner’s son Monte Olvera said he expects the price of coffee to increase within the next month.

“We’ve been taking on the toll, hoping that (prices) will eventually drop but it seems like it’ll only get more expensive,”

Olvera said “Your average $3 cup of coffee is going to become $5.”

In addition to the rising price of coffee beans, Olvera said Blvd Coffee raised prices for some baked goods by up to 12.5%.

Small businesses such as Power Cup and Blvd Coffee rely on consistent customers, but many consumers are struggling to deal with increased prices.

Valentina Castellon, 19, ceramics major, said she has already seen prices go up at local coffee shops, and as a result has “been making (her) coffee at home.”

As prices increase, consumers’ priorities shift, as do their spending habits.

“(The motivation) to buy really good exquisite coffee from the coffee shop gets put on the back burner when you need to buy everyday items like shoes, clothes, food,” Forman said.

Even as consumers start choosing where to spend more carefully, small businesses still rely on their community’s support.

“Instead of going to Starbucks, go and support local businesses,” Olvera said. “Look for Latino-owned businesses.”