World Coffee News October, 31st

Oct 31, 2025 |Share

Tariffs, Trends, and “Regenerative Coffee”: This Week in Coffee

From the U.S. government eyeing steep import tariffs on Nicaraguan coffee, to the continued rise of iced beverages among younger drinkers, and the growing momentum behind “regenerative” coffee farming in the UK — this week’s stories explore how politics, economics, and culture are shaping the future of coffee worldwide.

U.S. Eyeing 100% Tariffs on Nicaraguan Coffee Imports

The U.S. coffee market could soon face another supply chain challenge as the Office of the U.S. Trade Representative (USTR) considers imposing up to 100% tariffs on coffee and other imports from Nicaragua.

According to the proposal, the move comes in response to findings that Nicaragua’s labor practices, workers’ rights, and rule of law enforcement are “unreasonable and discriminatory.” These findings could have sweeping effects, especially for green coffee importers and U.S. roasters that rely on Nicaraguan beans for their blends.

While Nicaragua accounts for a smaller percentage of total U.S. coffee imports compared to Brazil or Colombia, its beans are prized in specialty markets for their balance of sweetness and acidity. Higher tariffs could therefore reduce supply, raise prices, or force roasters to seek alternatives from nearby Central American producers such as Honduras or Costa Rica.

The USTR is currently inviting public comment on the proposed tariffs until November 19, giving businesses, industry groups, and consumers a chance to weigh in on how the decision might affect trade, pricing, and sustainability in the coffee sector.

With ongoing tensions between the U.S. and coffee-producing nations like Brazil and Vietnam already putting pressure on the market, additional tariffs could further disrupt the delicate balance of global coffee flows.

Iced Coffee Continues to Dominate, Driven by Gen Z and Changing Habits

Cafes across the U.S. and beyond are reporting a clear and growing trend: iced drinks are outselling hot coffee by a wide margin, especially among younger consumers.

Recent data suggests that Gen Z coffee drinkers overwhelmingly prefer cold or iced beverages — from iced lattes and cold brews to creative coffee mocktails. This shift has accelerated since the pandemic, when takeout and convenience became dominant parts of the café experience.

But there’s more to the trend than temperature. Iced drinks carry a perceived premium — they often feature custom syrups, flavored milks, or layered presentations that justify slightly higher prices. For cafes struggling with rising green bean costs and thin profit margins, iced beverages offer a smart financial strategy: customers are happy to pay more for what feels like a “treat.”

Generational preferences also play a key role. Many younger consumers associate iced coffee with modern café culture, social media aesthetics, and all-day drinking — something hot coffee doesn’t lend itself to as easily.

In other words, iced coffee has become more than a summer staple; it’s a cultural statement — one that keeps evolving with each new generation of coffee lovers.

“Regenerative Coffee” Gains Momentum in the UK Market

In the UK, the conversation around sustainability has taken a new turn. The country’s growing interest in “regenerative coffee” — a farming approach that goes beyond sustainability to actively restore ecosystems and capture carbon — is driving significant market growth.

According to recent reports, sales of regenerative coffee have nearly tripled, fueled by demand from corporate offices, high-end retailers, and eco-conscious consumers. This trend is part of a broader shift toward environmentally restorative agriculture, where farmers aim to improve soil health, increase biodiversity, and reduce greenhouse gas emissions — all while producing top-quality coffee.

Unlike traditional sustainability initiatives, regenerative practices focus on creating a net-positive environmental impact. These methods can include intercropping, composting organic matter, reducing chemical use, and integrating shade trees that support local wildlife.

For coffee producers, the growing interest in regenerative farming also translates to economic opportunity. Higher demand and premium pricing mean more funding for farms willing to transition to regenerative systems — creating a positive feedback loop that benefits both farmers and the planet.

While still a niche segment globally, the UK’s enthusiasm may signal what’s ahead for other markets as consumers increasingly seek products that not only do less harm but actively contribute to climate repair.

From Policy to the Pour: A Snapshot of Coffee’s Changing Landscape

This week’s stories show how dynamic — and complex — the global coffee industry has become. On one hand, political and trade developments like potential U.S. tariffs on Nicaraguan imports threaten to disrupt the market. On the other, consumer-driven trends like the iced drink boom and the rise of regenerative coffee demonstrate how coffee continues to evolve culturally, economically, and environmentally.

Whether it’s a policymaker in Washington, a farmer in Central America, or a barista in London, everyone in the coffee world is feeling the effects of these shifts. The result is an industry at once challenged and energized — pushing toward a more conscious, creative, and resilient future.

Photo Credit: Livier Garcia on Pexels