By Laura Cooper

Americans love their coffee. They're willing to pay for it. Tariffs could test that as the year goes on.

"The tariff impacts will become prominent," said Tim Cofer, chief executive of Keurig Dr Pepper, talking about coffee's second-half trajectory on the company's Thursday earnings call.

The U.S. is set to levy a 50% tariff on Brazilian goods-including coffee beans-from Aug. 1. Coffee beans from Brazil had already gotten more expensive, as poor weather pushed up prices at the end of last year.

Adding in inflation effects and consumer uncertainty, Keurig Dr Pepper said investors should expect subdued performance in its coffee business through the remainder of the year.

Keurig Dr Pepper on Thursday reported stronger results in its coffee segment. The company, which makes Keurig brewers and sells brands like Green Mountain Coffee, has increased prices this year and has another planned hike next month.

Shares of Keurig Dr Pepper slipped less than 1% in early trading Thursday.

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July 24, 2025 10:32 ET (14:32 GMT)

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