Starbucks’ Stock Falls 1.34% as Trump Tariff on Brazilian Coffee Pushes Costs Up 3.5%—Trading Volume Ranks 144th in Market Activity

On August 6, 2025, Starbucks (SBUX) declined 1.34% with a trading volume of $0.70 billion, ranking 144th in market activity. The drop was attributed to President Trump’s 50% tariff on Brazilian coffee, a key supplier for the company. Analysts estimate the tariff could increase Starbucks’ annual costs by 3.5%, potentially reducing earnings by $0.02 per share. The company reported a 2% decline in same-store sales in Q2 despite a 1% rise in per-customer spending, indicating pricing pressures are already impacting performance.

The tariff’s impact is asymmetric: while U.S. consumers face higher coffee prices, global markets benefit as arabica futures fell 30% this year to $2.96 per tonne. Brazil, the world’s largest coffee producer, is projected to grow its economy by 2.3% despite the tariff, as excess supply shifts to other buyers. This dynamic has buoyed Asian and European markets, which opened higher on the same day, though Starbucks underperformed broader indices.

Starbucks’ stock has fallen 8% over five trading sessions and 1.15% year-to-date, reflecting investor concerns over margin compression. The company’s reliance on Brazilian coffee and limited domestic production exacerbate vulnerability to trade policy shifts. While Starbucks has hedged against some costs and expanded nearshoring efforts, analysts caution that long-term resilience depends on diversifying supply chains to regions like Colombia and East Africa.

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