Illy Coffee to Increase Prices Due to Trump’s Tariffs

Cristina Scocchia, the managing director of Italian coffee company Illy, announced that the company will be forced to increase its prices due to tariffs imposed this week by the administration of U.S. President Donald Trump. Scocchia further stated that Illy is considering the long-term possibility of building a factory in the U.S., should it find itself in the eye of the storm based on Trump’s plans to impose tariffs on all countries. ‘The tariffs will be passed on to the final price (…) we, like I suspect other companies, are trying to calculate by what percentage,’ she said in a telephone interview. The profit margins of the industry are already limited due to the rise in the price of fresh coffee beans. Illy kept its prices stable last year despite the increase in Arabica prices but raised them by 4% overall in 2025 on average. Scocchia mentioned that some products sold in the U.S. might be produced there, while the rest of the production will remain in Italy, confirming an investment of 120 million euros for doubling production capacity. ‘We are conducting a feasibility study at present, however, building a factory (in the U.S.) will take time,’ she added. The U.S. is the second-largest market for Illy coffee, with one-fifth of the company’s revenue coming from the country. Founded in Trieste in 1933, Illy is controlled by the Illy family, which in 2021 sold a 20% stake to American Rhone Capital.