How much is your morning coffee going to cost in the future?
It might depend on where you are. If you live in Europe, for example, a new tax could make that cup of joe more expensive. The European Union plans to impose a two-cent levy on every kilogram of roasted and ground coffee beans imported from outside the EU as part of its efforts to discourage imports into Europe and help local producers. This will mean higher prices for buyers throughout Europe – but it also means that sellers can charge a little bit more too!
The European Union has taken this measure to help local producers, and it is expected that the measure will discourage imports. It may also have an effect on sellers in America who are importing their coffee from overseas.
They too could be faced with higher prices or lower profits due to the new tax if they choose not to pass along any of these additional costs back to buyers. So what’s your morning cup going to cost you now?
You can read more about taxes on coffee at The Guardian; National Public Radio (NPR); Euronews English; CBS News. You can find news updates by following @FAOSTAT_EurostatEU and #Brexit on Twitter as well! -Coffee drinkers