Tim Hortons Raises Coffee Prices, Citing Soaring Bean Costs and Trade Woes
October 11 - 2025
Coffee Geography Magazine
In a move reflecting the jittery state of global coffee markets, Canada's iconic Tim Hortons chain has raised its prices, defending the hike as a "more than reasonable" response to economic pressures. For the first time in three years, the cost of a cup of coffee is going up, with the company announcing an increase of 1.5 percent, which it says boils down to an average of just three cents more per cup.
The company justifies the increase by pointing to the dramatic surge in the cost of its core ingredient. According to Tim Hortons, the price of coffee beans has more than doubled, jumping from C$2.21 to C$5.45 per pound over the last three years. This sharp rise is part of a wider trend affecting all coffee drinkers; outside of drive-thrus, Canadians paid 27.9 percent more for their coffee at grocery stores in August compared to the same time last year.
The roots of this price volatility extend deep into international trade. Canada, which imports nearly a quarter of its coffee from Colombia, with the rest sourced from Brazil, Mexico, Peru, and Central American countries, saw its coffee trade valued at over $1.3 billion this past July. The situation has been further complicated by trade tensions. The United States' imposition of 50 percent tariffs on Brazil, the world's largest coffee exporter, and subsequent retaliatory tariffs from Canada on the U.S. have disrupted the market. Canada imported 3.9 million kilograms of roasted coffee, mostly from the U.S. in July 2025. The counter-tariff measures are "possibly affecting costs for some Canadian coffee importers."
This perspective is echoed by the Canadian supermarket giant, Loblaw, which highlighted coffee in its recent report. The company stated that "coffee prices have climbed back near their 2025 highs," directly blaming the U.S. tariffs on Brazil. The tariffs have created a volatile environment where buyers must "compete" for alternative suppliers while Brazilian coffee growers, cautious of the market, are "holding on to their beans." This combination of U.S. trade policy and grower caution is, according to Loblaw, "keeping global coffee markets volatile." As a result, the simple morning ritual for millions of Canadians is becoming increasingly subject to the complex forces of international economics and trade disputes.









