Starbucks Corporation (NASDAQ: SBUX) shares plummeted 6.38% in Friday's pre-market trading session, as investors reacted to a perfect storm of negative news affecting the coffee giant. The steep decline comes in the wake of new tariffs announced by President Trump and a price target cut by a major analyst firm.

Bernstein, an influential research firm, lowered its price target on Starbucks to $105 from $115, citing concerns about the company's near-term outlook. While maintaining an Outperform rating, this adjustment has sparked investor worries about Starbucks' growth prospects in an increasingly challenging market environment.

Adding to the pressure, President Trump's announcement of sweeping new tariffs is expected to significantly impact Starbucks' operations. The company imports coffee from more than 30 countries, including Vietnam, which was hit with one of the highest tariffs at 46%. With less than 1% of coffee consumed in the U.S. being produced domestically, these levies will be particularly difficult for coffee retailers to avoid.

Analysts are also expressing concerns about potential negative sentiment towards U.S.-based consumer brands in international markets, which could affect Starbucks' overseas sales. Furthermore, fears of reduced consumer spending and a possible recession are weighing heavily on the restaurant industry as a whole, with Starbucks being particularly vulnerable due to its premium pricing strategy.

As Starbucks' new CEO, Brian Nicoll, grapples with these challenges, investors will be closely watching how the company navigates rising costs while maintaining its commitment to a price freeze through fiscal year 2025. The coming months will be crucial in determining whether Starbucks can weather this storm and emerge stronger in an increasingly competitive global coffee market.