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Starbucks CEO will be ‘forced into no win choice’ just months into tenure – despite vowing price freeze

Retailers resorted to strategies to minimize the impact of tariffs on consumers

STARBUCKS chiefs risk having to make tough decisions as a result of Donald Trump’s sweeping tariff agenda - and this could mean price rises, a retail expert has claimed. 

This is despite the fact that CEO Brian Niccol, who assumed the role in September last year, seemed to rule out a hike.

Brian Niccol, CEO of Taco Bell Corp., ringing the NASDAQ Opening Bell.
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Starbucks CEO Brian Niccol ruled out any price rises in December last yearCredit: Getty
Interior of a Starbucks coffee shop with coffee beans and K-cups for sale.
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Fears are mounting that Starbucks customers could see a price rise in coffeeshopsCredit: Getty

Starbucks imports coffee from three regions - Latin America, Africa and the Asia-Pacific and some nations have been penalized with high tariffs.

Vietnam, one country where Starbucks imports coffee from, has been clobbered with a 46% reciprocal tariff. 

Retail chiefs are bracing for the impact of Trump’s tariffs, but industry experts suggest execs could be forced into potentially tricky choices.

And, there are few options that appear to benefit both customers and shareholders.

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“Starbucks is either going to have lower margins and keep prices where they are,” Peter Cohan, an associate professor of management practice at Babson College, told Fortune.

“Or they’ll be forced to raise prices.”

Research analyst Danilo Gargiulo, from Alliance Bernstein, noted how Starbucks chiefs have sourced coffee beans from Latin American nations, which are not subject to the tariffs Vietnam is subject to.

Costa Rica, for example, has been hit with a 10% tariff. 

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And, he doesn’t believe Starbucks bosses will increase prices because of Niccol’s commitments.

"It's simply hard to conceive of a world in which [Starbucks] consumers could be absorbing incremental price increases," Gargiulo said.

Trump blasts 'panicking' China after Xi hits back against tariffs with huge 34% hike - as stocks plunge for a second day

The U.S. Sun approached Starbucks for comment. We did not receive a response.

It was only in December when Niccol, the former CEO of Chipotle, revealed he didn’t want to hike the cost of drinks.

“We’re gonna hit the pause button on any pricing this fiscal year,” he told ABC News.

"I still think there's an opportunity for us to simplify the pricing architecture right now.”

President Trump's Reciprocal Tariffs

President Trump unveiled his reciprocal tariff plan on countries worldwide on April 2, which he declared as "Liberation Day."

Reciprocal tariffs per country, which includes the 10% baseline fee:

  • China: charges the US 67% tariffs, the US will counter with 34% reciprocal tariffs.
  • European Union: charges the US 39% tariffs, the US will counter with 20% reciprocal tariffs.
  • Vietnam: charges the US 90% tariffs, the US will counter with 46% reciprocal tariffs.
  • Taiwan: charges the US 64% tariffs, the US will counter with 32% reciprocal tariffs.
  • Japan: charges the US 46% tariffs, the US will counter with 24% reciprocal tariffs.
  • India: charges the US 52% tariffs, the US will counter with 26% reciprocal tariffs.
  • South Korea: charges the US 50% tariffs, the US will counter with 25% reciprocal tariffs.
  • Thailand: charges the US 72% tariffs, the US will counter with 36% reciprocal tariffs.
  • Switzerland: charges the US 61% tariffs, the US will counter with 31% reciprocal tariffs.
  • Indonesia: charges the US 61% tariffs, the US will counter with 32% reciprocal tariffs.
  • Malaysia: charges the US 47% tariffs, the US will counter with 24% reciprocal tariffs.
  • Cambodia: charges the US 97% tariffs, the US will counter with 49% reciprocal tariffs.
  • United Kingdom: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • South Africa: charges the US 60% tariffs, the US will counter with 30% reciprocal tariffs.
  • Brazil: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Bangladesh: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
  • Singapore: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Israel: charges the US 33% tariffs, the US will counter with 17% reciprocal tariffs.
  • Philippines: charges the US 34% tariffs, the US will counter with 17% reciprocal tariffs.
  • Chile: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Australia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Pakistan: charges the US 58% tariffs, the US will counter with 29% reciprocal tariffs.
  • Turkey: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Sri Lanka: charges the US 88% tariffs, the US will counter with 44% reciprocal tariffs.
  • Colombia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Peru: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Nicaragua: charges the US 36% tariffs, the US will counter with 18% reciprocal tariffs.
  • Norway: charges the US 30% tariffs, the US will counter with 15% reciprocal tariffs.
  • Costa Rica: charges the US 17% tariffs, the US will counter with 10% reciprocal tariffs.
  • Jordan: charges the US 40% tariffs, the US will counter with 20% reciprocal tariffs.
  • Dominican Republic: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • United Arab Emirates: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • New Zealand: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
  • Argentina: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Ecuador: charges the US 12% tariffs, the US will counter with 10% reciprocal tariffs.
  • Guatemala: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Honduras: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Madagascar (Burma): charges the US 88% tariffs, the US will counter with 44% reciprocal tariffs.
  • Tunisia: charges the US 55% tariffs, the US will counter with 28% reciprocal tariffs.
  • Kazakhstan: charges the US 54% tariffs, the US will counter with 27% reciprocal tariffs.
  • Serbia: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
  • Egypt: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Saudi Arabia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • El Salvador: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Côte d'Ivoire: charges the US 41% tariffs, the US will counter with 21% reciprocal tariffs.
  • Laos: charges the US 95% tariffs, the US will counter with 48% reciprocal tariffs.
  • Botswana: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
  • Trinidad and Tobago: charges the US 12% tariffs, the US will counter with 10% reciprocal tariffs.
  • Morocco: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Moldova: charges the US 61% tariffs, the US will counter with 31% reciprocal tariffs.
  • Angola: charges the US 63% tariffs, the US will counter with 32% reciprocal tariffs.
  • Democratic Republic of the Congo: charges the US 22% tariffs, the US will counter with 11% reciprocal tariffs.
  • Jamaica: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Mozambique: charges the US 31% tariffs, the US will counter with 16% reciprocal tariffs.
  • Paraguay: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Zambia: charges the US 33% tariffs, the US will counter with 17% reciprocal tariffs.
  • Lebanon: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Tanzania: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Iraq: charges the US 78% tariffs, the US will counter with 39% reciprocal tariffs.
  • Georgia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Senegal: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Azerbaijan:charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Cameroon: charges the US 22% tariffs, the US will counter with 11% reciprocal tariffs.
  • Uganda: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
  • Albania: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Armenia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Nepal: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Sint Maarten: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Falkland Islands: charges the US 82% tariffs, the US will counter 41% with reciprocal tariffs.
  • Gabon: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Kuwait: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Togo: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Suriname: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Belize: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Algeria: charges the US 59% tariffs, the US will counter with 30% reciprocal tariffs.
  • Oman: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Uruguay: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Bahamas: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Lesotho: charges the US 99% tariffs, the US will counter with 55% reciprocal tariffs.
  • Ukraine: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Bahrain: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Qatar: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Mauritius: charges the US 80% tariffs, the US will counter with 40% reciprocal tariffs.
  • Fiji: charges the US 63% tariffs, the US will counter with 32% reciprocal tariffs.
  • Iceland: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Kenya: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Liechtenstein: charges the US 73% tariffs, the US will counter with 37% reciprocal tariffs.
  • Guyana: charges the US 76% tariffs, the US will counter with 38% reciprocal tariffs.
  • Haiti: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Bosnia and Herzegovina: charges the US 70% tariffs, the US will counter with 35% reciprocal tariffs.
  • Nigeria: charges the US 27% tariffs, the US will counter with 14% reciprocal tariffs.
  • Namibia: charges the US 42% tariffs, the US will counter with 21% reciprocal tariffs.
  • Brunei: charges the US 47% tariffs, the US will counter with 24% reciprocal tariffs.
  • Bolivia: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
  • Panama: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Venezuela: charges the US 29% tariffs, the US will counter with 15% reciprocal tariffs.
  • North Macedonia: charges the US 65% tariffs, the US will counter 33% with reciprocal tariffs.
  • Ethiopia: charges the US 10% tariffs, the US will respond with a 10% baseline fee.
  • Ghana: charges the US 17% tariffs, the US will counter with 10% reciprocal tariffs.

The full list was shared on by the White House's rapid response team on X.

Officials at the National Coffee Administration had urged Trump to exempt coffee from tariffs. 

They warned that there is no other substitute to the beans that are imported from overseas. 

Shoppers and businesses are bracing for the impact of tariffs announced at the Rose Garden press conference on Wednesday. 

Walmart bosses desperately tried to lobby suppliers in Beijing for price cuts before the measures were announced, as reported by Bloomberg.

Scores of items, ranging from sneakers to belts and clothes, come from China.

And, Target bosses have been diverting production of items made in China.

Execs revealed that some clothing items are produced in countries such as Honduras and Guatemala, per CNBC.

Trump announced that China will be hit with an extra 34% levy - and Beijing has responded.

'LIBERATION DAY'

Trump branded the sweeping set of tariffs “Liberation Day” as he blasted nations that he believed were taking advantage of the United States.

Beijing officials revealed that a 34% tariff will be added on all American goods sold in Beijing.

Trump has claimed that the measure was a “panic move” by Chinese president Xi.

“This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice,” Beijing tariff officials have claimed.

The additional 34% tariff Trump whacked on Chinese imports is on top of the measures already in place.

Two 10% tariffs have already been slapped on China as the president vowed to bring back American manufacturing.

Not all goods are imported from China.

Fears are mounting that drivers could see the price of foreign cars increase, and shoppers could feel the pinch at the supermarket when trying to buy fruits such as avocados that are imported from Mexico.

Trump first proposed tariffs on Mexico and Canada within weeks of retaking the presidency.

"We import 80 per cent of avocados that we consume in America and those are perishable items, so they will be more expensive immediately," economist Dr Sung Won Sohn told The New York Post.

And, David Warrick, a supply chain expert, warned businesses will be forced into making tough decisions - and these could impact the consumer.

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"For industries like automotive, electronics, and pharmaceuticals, where global component sourcing is deeply embedded, this will be felt almost immediately," he told the Post.

“Expect higher input costs, margin pressure, and difficult decisions about what gets passed on to consumers.”

Donald Trump holding a chart of reciprocal tariffs.
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Trump unveiled his flurry of reciprocal tariffs on April 2Credit: AFP
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