Starbucks (NASDAQ: SBUX) shares took a significant hit in pre-market trading, plummeting 8.25% as investors reacted to concerns over potential expanded tariffs that could erode the coffee giant's profit margins. The sharp decline comes amid a broader sell-off in restaurant stocks, with many facing similar pressures due to their reliance on imported goods.

As a major coffee importer, Starbucks is particularly vulnerable to trade tensions. Analysts at Baird highlighted that without effective workarounds, Starbucks might encounter steeper obstacles compared to some of its peers in the restaurant industry. The company's extensive global supply chain, which relies heavily on imported coffee beans and other ingredients, puts it at greater risk from potential new tariffs.

The National Restaurant Association warned that the potential new tariffs could lead to higher food and packaging costs across the industry. This situation may force restaurants, including Starbucks, to consider raising prices to maintain their profitability. The association emphasized the difficulty in sourcing all necessary ingredients domestically, stating, "It's simply not possible for U.S. farmers and ranchers to produce the volumes needed to support consumer demand."

While Starbucks has shown resilience in recent quarters, with its latest earnings report surpassing analysts' expectations, the looming threat of increased tariffs presents a new challenge for the company. Investors will be closely watching how Starbucks navigates these potential trade hurdles and manages its global supply chain in the coming months. The company's ability to adapt to this changing trade landscape could be crucial in determining its future performance and stock price recovery.