Article Summary –
Austin and Hannah McCourt’s ownership of Badger Brothers Coffee, starting in January 2020, coincided with the COVID-19 pandemic, but now they face new challenges due to President Trump’s tariffs.
The tariffs, which impose a 10% duty on most imported goods, including coffee, present a significant financial burden for small coffee businesses like Wonderstate Coffee and Badger Brothers because the U.S. cannot produce sufficient coffee domestically.
In response to the increased costs, Austin McCourt plans to implement a “Trump tariff surcharge,” and both he and other coffee business owners are advocating for tariff exemptions while expressing concerns over the stress and financial decisions imposed by these tariffs on small businesses.
Austin and Hannah McCourt bought Badger Brothers Coffee in downtown Platteville in January 2020, just before COVID-19 hit. Since its 2003 opening, the coffee shop has changed owners three times and endured pandemic challenges for small businesses. Now, Austin McCourt and other Wisconsin coffee shops face a new challenge: tariffs imposed by President Donald Trump.
Trump implemented 10% tariffs on most imported goods on April 2, with higher reciprocal tariffs starting July 8. The tariffs aim to increase U.S. production but broadly affect imported goods, including coffee.
The U.S. imports the world’s second-largest amount of coffee. The climate allows coffee cultivation only in Hawaii and Puerto Rico, making domestic production insufficient.
“There’s no bringing coffee back to the U.S. — it doesn’t grow here. It feels like a tax on our business and consumers,” said TJ Semanchin, co-owner of Wonderstate Coffee in Viroqua. The coffee roaster opened in 2006 and now operates three shops in Wisconsin. Semanchin compared the tariff’s impact on his coffee business to the chaos of COVID.
Wonderstate awaits its first tariff-affected shipment of Ethiopian green coffee beans, a $200,000 order expected to incur a $20,000 tariff cost. Wonderstate may secure a loan to cover the added expense.
Wonderstate and Badger Brothers import coffee from Colombia, which supplies 20% of U.S. coffee, Ethiopia, and Honduras. Wonderstate also sources from Peru, Mexico, Guatemala, Kenya, the Democratic Republic of the Congo, and Burundi. Trump briefly threatened a 50% tariff on Colombian goods.
Semanchin described the tariffs as chaotic, rapidly changing conditions that complicate preparation. Wonderstate won’t immediately increase customer prices but might raise coffee costs by a quarter per cup or $1-$2 per bag in the future.
“It hurts small businesses. The administration may spin it otherwise, but it makes our work harder, affecting our bottom line and investment potential,” Semanchin stated.
Austin McCourt plans a “Trump tariff surcharge” for his products to explain price rises. He noted that regular customers support the extra fees to keep the shop running.
“In my opinion, [Trump is] causing stress for people already struggling,” said Austin McCourt. Trump claims to protect Main Street, but the tariffs seem disrespectful to small businesses.
During a May 4 NBC interview, Trump dismissed concerns, stating, “They’re going to make so much money.”
“We came from nothing, worked through college to buy a coffee shop, and now face difficult financial decisions due to a few billionaires in power,” McCourt said.
The National Coffee Association and Badger Brothers Coffee’s broker advocate for a tariff exemption (source).
In a social media video, Semanchin urged customers to contact officials about the tariff impact on coffee prices.
McCourt expressed concern that price hikes might discourage some regulars, some visiting Badger Brothers for 22 years. However, he hopes long-term relationships and customer engagement will help the shop endure.
“I have diverse customers, from professors to politicians. In the last 14 weeks,” McCourt said, “I have never had so many concerned customers asking how they can help. That gives me hope.”
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