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Illycaffè to Raise Prices Amid Potential U.S. Tariffs

by Jessica

Italian coffee maker Illycaffè may be forced to raise prices if tariffs are imposed by the U.S. government, CEO Cristina Scocchia said on Tuesday. These tariffs are part of a plan from President Donald Trump’s administration, which aims to target countries accused of unfair trade practices that harm American goods and workers.

Scocchia explained that if tariffs are applied, the company will pass on the costs to consumers. “Duties will be passed on to the final price,” she said in a phone interview. However, she noted that Illy, like other companies, is still evaluating how much of the cost increase will be passed to customers.

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Illycaffè is already facing pressure from rising raw coffee bean prices, which are affecting profit margins across the industry. Despite this, the company managed to keep prices stable last year, even as the cost of arabica beans surged. In 2025, Illy raised its prices globally by an average of 4%.

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Scocchia also mentioned that while some products sold in the U.S. could eventually be produced locally, the majority of production will remain in Italy. She confirmed a €120 million investment in Italy to double the company’s production capacity.

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