NEW YORK CITY, New York: Tea importers in the U.S. have faced rising costs, stalled orders, and shrinking profit margins because of President Donald Trump's tariffs. Even though the administration has now paused some of those tariffs, many in the industry say the damage won't disappear quickly.

"It took time for tariffs to ripple through the system, and it will take time for them to clear out," says Bruce Richardson, a tea master and owner of Elmwood Inn Fine Teas in Kentucky. "Tariffed tea is still sitting in our warehouses."

While large companies dominate supermarket tea brands, much of the premium tea market is run by small businesses — family farms, boutique importers, tea rooms, and specialty cafés. These businesses have become an example of how tariffs can strain small operations.

Some teas have disappeared from shelves entirely because the added costs made them too expensive to stock. Warehouses are dealing with uncertainty and logistical challenges, especially when blending teas from multiple countries with different tariff rates. Many business owners have delayed hiring, wage increases, marketing, and other investments to ensure they have cash ready to pay duties when shipments arrive at U.S. ports.

In Massachusetts, Hartley Johnson of the Mark T. Wendell Tea Company says he absorbed tariff costs for as long as he could. Eventually, he had to raise prices. His best-selling tea, a Taiwanese Hu-Kwa, increased from US$26 to $46 per pound. Now he worries about losing customers. "Where's the tipping point?" he asks. "I think we're reaching it."

Despite Trump's partial rollback of agricultural tariffs, many tea importers are cautious. Much of next year's inventory has already been imported at higher tariff rates, meaning customers may continue to feel the impact for some time.

Meanwhile, tariffs remain in place on other imports essential to tea businesses, including teapots, strainers, and even American-made packaging that relies on foreign materials — further driving up costs.

Tea has deep roots in American history, famously tied to the Boston Tea Party protest against taxation without representation. Richardson notes the irony: "It feels like that all over again. Congress is allowing the president to act like George III."

For more than 150 years, most tea entered the U.S. with little or no duty. That changed during Trump's first term, but the increases since his return to office have been dramatic. In July alone, tea imports were taxed at an average rate of more than 12 percent — up from less than 0.1 percent a year earlier. In that single month, Americans paid over $6 million in tea tariffs, more than in any previous full year on record.

From January to July 2025, tea importers paid nearly $19.6 million in duties — about seven times more than during the same period last year.

The tariffs have left many in the industry frustrated, particularly because the U.S. relies almost entirely on imports to meet demand. While a few small farms exist domestically, they produce just a fraction of what Americans consume.

For some businesses, relief arrived too late. Los Angeles–based International Tea Importers Inc., a 35-year-old company, recently announced its closure. Owner Devan Shah told customers that unpredictable tariffs were the final blow, writing: "They created the last, insurmountable barrier."