Tea tariffs once sparked a revolution. Now they are creating angst

U.S. Tea Importers Struggling Despite Tariff Relief

A tax on tea once sparked rebellion. This time, it’s just causing headaches.

Importers of the prized leaves have watched costs climb, orders stall, and margins shrink under President Trump’s tariffs. Even after Trump’s recent decision to suspend tea tariffs, industry insiders say the relief won’t immediately undo the damage already inflicted on their businesses.

“It took a while for these tariffs to work their way through the system, and it will take a while for it to work its way out,” explains Bruce Richardson, tea master, historian, and owner of Elmwood Inn Fine Teas in Danville, Kentucky. “That tariffed tea is still working its way out of our warehouses.”

While major corporations control most supermarket tea brands, America’s premium tea market consists largely of smaller businesses—family farms, specialty importers, and a network of independent tea shops across the country. These small enterprises have become ground zero for observing the real-world effects of trade policies.

The impact is visible throughout the supply chain. Tea selection has narrowed as some varieties became financially unviable with steep levies added. Warehouse managers struggle with uncertainty and operational complexities, including calculating accurate costs for blends containing ingredients from multiple countries affected differently by tariffs. Meanwhile, business owners have postponed hiring, raises, marketing campaigns, and other investments to ensure enough cash flow for paying duties when shipments arrive at U.S. ports.

“If I were to add up all the money I’ve spent on tariffs that weren’t there a year ago, it could equal a new employee,” laments Hartley Johnson, owner of the Mark T. Wendell Tea Company in Acton, Massachusetts.

Johnson previously maintained stable pricing for a year or longer. Initially, he absorbed the tariff costs before being forced to pass them on to customers. His most popular offering, a smoky Taiwanese tea called Hu-Kwa, has gradually increased from $26 to $46 per pound, causing customers to reconsider their purchases.

“Where is that tipping point?” Johnson wonders. “I’m kind of finding that tipping point is happening now.”

Though Trump recently backed off some agricultural product tariffs, many in the tea industry remain cautious about celebrating prematurely. Much of next year’s supply has already been imported with tariffs paid, and the full impact may not have completely trickled down to consumers yet.

Furthermore, tariff-driven price increases persist on other essential imports. Gilbert Tsang, owner of MEM Tea Imports in Wakefield, Massachusetts, points out: “The canisters, the bamboo boxes, the matcha whisks, everything that we import, everything that we sell has been affected by tariffs.” Even costs for American-made items like packaging tins have increased due to their reliance on foreign materials.

While coffee dominates the American beverage landscape today, tea has been interwoven with American history from the beginning. The 1773 Boston Tea Party erupted when British Parliament imposed tea tariffs on colonists who objected to taxation without representation. Ironically, after the United States gained independence, one of the new government’s first major acts—the Tariff Act of 1789—established import taxes on various products including tea. Eventually, trade policy evolved to include exceptions for products Americans rely on but don’t produce domestically.

For more than 150 years, most tea entered U.S. ports with minimal or no duties. This began changing during Trump’s first term with his tough stance on China, but the impact accelerated dramatically during his return to the White House.

According to the U.S. International Trade Commission, tea faced an average tariff rate exceeding 12% in July 2025, compared to less than one-tenth of one percent a year earlier. That month alone, American businesses and consumers paid over $6 million in tea import taxes—more in just 31 days than any previous full year on record.

“All over again, taxation without representation,” says Richardson, who advises the Boston Tea Party Ships & Museum. “Our wants and needs and our voices are not being represented because Congress is avoiding the issue by simply allowing the president to act like George III.”

In total, tea importers paid approximately $19.6 million in tariffs during the first seven months of 2025, nearly seven times more than during the same period last year.

The situation particularly frustrates industry experts because the U.S. depends almost entirely on imports to satisfy domestic tea consumption. While small tea farms exist across America, their combined production couldn’t meet national demand for more than a few hours annually.

“We don’t have an industry and we can’t produce one overnight,” explains Angela McDonald, president of the United States League of Tea Growers.

For some businesses, Trump’s suspension of tea tariffs came too late. Los Angeles-based International Tea Importers Inc. closed after 35 years when tariffs created an unsustainable cash flow problem.

“We just became over-leveraged financing not just the inventory, but also the tariffs,” explains CEO Brendan Shah. While tariffs weren’t the only challenge facing his business, Shah believes that without them, his company might have survived.

In his final message to customers, Shah cited “unpredictable tariff policies” as “the final, insurmountable barrier” that forced his company’s closure.