(KGTV) — President Trump's tariffs could impact your favorite green tea. A 15% tariff on Japanese imports kicks in at midnight, which could mean the popular matcha green tea will get more expensive.
Could your matcha era be over? The popular drink is taking social media by storm, but with upcoming tariffs for Japanese imports and high demand for the drink, how are local businesses going to keep up?
Local shops are facing a triple threat: new tariffs, higher demand, and supplies not keeping up, making every form of matcha more expensive.
"We make matcha lattes, matcha drinks, matcha teas, we make soft-serve ice cream on matcha-based ingredients," said William Sutjiadi, who co-owns Matcha Cafe Maiko in Kearny Mesa. He's trying to make sure his prices stay affordable for his loyal green tea drinkers.
"We are trying to hold our ground in terms of holding our prices for our customers, but coming August 1, we don't know how much of a price increase that we are going to incur," said Sutjiadi.
With President Trump's announcement of tariffs on Japanese imports happening Friday, local matcha shops are bracing for a financial hit.
Across town in Normal Heights, Juslene Navarro, the general manager of Maya Moon Collective, said the shop sells about 200 matchas a week, about 20 a day, speaking to the drink's popularity. She thinks even with the tariffs, getting the herbal green to customers won't be an issue. They'll continue to source matcha from Japan even as the popularity has tightened the supply chain.
"I think with more demand, we'll continue to supply matchas and we'll continue to serve matchas, especially to people who aren't familiar with it," said Navarro.
Sutjiadi sells thousands of matcha drinks every week. He said he'll continue serving his popular concoctions to his guests, but they may see a bigger dent in their wallets after taking in the sweet treats.
"We are already see some price increase already announcement from some of our suppliers, that prices are going to increase again, so we're hoping we're able to hold. But with our margins and the quality that we provide, we're probably going to be forced to increase our prices," said Sutjiadi.
