Behind a Maine Coffee Company’s Decision to Raise Prices

Rock City Coffee had tried hard to keep prices stable amid President Trump’s volatile tariff policy rollout.

The company, which has a roastery in Rockport, Maine, and a cafe in nearby Rockland, had pushed through a modest price increase on its beans earlier in the year because of relentless issues with the global coffee supply, caused in part by droughts in Vietnam and Brazil. But since the president imposed a blanket 10 percent tariff on U.S. trading partners in April, Rock City Coffee had been swallowing the additional cost on imported green coffee from countries around the world.

Then the situation became untenable. Its profits were rapidly eroding. On top of that, the president vowed in early July to impose a 50 percent tariff against Brazil that would elevate coffee prices even more if they went into effect.

So a few days later, Jessie Northgraves, Rock City Coffee’s chief executive, posted a one-page letter on her company’s Facebook page.

“Our bean prices,” she wrote, “will be increasing within the next week.”

As Mr. Trump’s unpredictable trade war drags on and companies wrestle with whether, and when, to raise prices, Rock City Coffee is a case study in the decision-making process.

When Mr. Trump introduced his tariffs, many businesses were reluctant to pass on the costs to inflation-weary consumers. Many opted to shoulder the burden themselves even if it meant they would have to make do with smaller profit margins. Some have decided to delay pricing decisions while they wait to see if some of the most punishing tariffs will ever kick in.