admin
President Trump’s new tariffs on imported coffee beans are hitting small businesses hard. Wonderstate Coffee, a Wisconsin-based roaster, says the 10% tax on imports is causing major headaches. Owner TJ Semanchin explains his company could face up to $300,000 in new costs this year alone. That money might’ve gone toward hiring workers or upgrading equipment made right here in America.
Coffee shops nationwide are raising prices to survive. The Crown in Oakland added 50 cents to every drink. Others in Illinois, Texas, and New Jersey are following suit. Semanchin already raised prices 15-20% earlier this year and warns another hike is coming. Regular folks grabbing their morning brew will soon feel the pinch.
The tariffs create chaos for businesses trying to plan. Semanchin describes scrambling to adjust when policies change weekly. First, Mexico faced huge taxes, then didn’t. Vietnam’s rates bounced from 46% to 10%. This whiplash makes it impossible to budget or source beans reliably.
Bad timing makes the pain worse. Coffee prices hit record highs before the tariffs thanks to crop failures in Brazil and shipping delays. Add a 10% tax to already sky-high costs, and small roasters get squeezed from both sides. Semanchin says this double whammy threatens his ability to keep providing jobs in rural Wisconsin.
While the White House aims to boost U.S. manufacturing, coffee shops can’t grow beans locally. America imports 99% of its coffee. Hawaii and Puerto Rico grow some, but not enough to meet demand. Tariffs on essential imports act like a tax on everyday Americans just trying to enjoy their daily cup.
Some argue tariffs protect American workers, but Main Street businesses disagree. Wonderstate had to pause equipment upgrades and may borrow money just to pay import taxes. These costs stifle growth and innovation. When government policies make survival harder for small employers, everyone loses.
Coffee lovers will see prices jump 30% this year, analysts predict. Families on tight budgets might cut back on small luxuries like coffeehouse visits. Semanchin’s loyal customers stick with him for now, but there’s a limit. If tariffs stay, even diehard fans may brew at home.
The lesson? Well-meaning policies sometimes backfire. While aiming to strengthen U.S. trade, these tariffs punish hardworking business owners and consumers. True economic freedom means letting markets work without burdensome taxes that choke small enterprises. For now, coffee drinkers and shop owners alike brace for rocky times ahead.
