How Tariffs Are Impacting the American Matcha Craze and Japanese Tea Tradition

Matcha's Rise in America

• 🍵 Matcha, more than a trend, is an ancient tradition originating from China and refined in Japan.
• 💡 It has become a favorite in American "hipster" coffee shops and among influencers.
• 📈 Matcha exports from Japan have doubled in the last 10 years, accounting for over half of Japan's green tea exports.

Challenges for Japanese Matcha Farmers

• ⛰️ In Uji, Japan, a town renowned for its high-quality matcha, demand is so high that products frequently sell out.
• ⚠️ Farmers are struggling to keep up with this demand and are limited in their ability to expand production due to the time-intensive nature of learning and practicing traditional farming methods.
• 📉 Lowering the quality of matcha is not an option, as it is considered a sacred part of Japanese tradition.

Impact of Tariffs on Imports

• 💸 Business owners in California are experiencing significant price increases, paying up to three times more for matcha.
• 📉 Some fear they may become unable to afford to stock the product.
• 📊 A baseline 15% tariff has been applied to nearly all Japanese imports, including beauty products, auto parts, and pharmaceuticals, in addition to matcha.
• 🗣️ Experts suggest that the best way to combat the rising costs is to increase production, though this is a slow process.