Customers at Shelburne’s Village Wine and Coffee have a new line item on their receipts as of Monday, August 18: “Trump Tariff on Coffee Countries (10%).”
The added 10 percent tax is in response to tariffs on goods imported into the U.S. imposed by President Donald Trump. The most recent wave, which took effect August 7, includes a 50 percent reciprocal tariff on Brazil, the world’s largest coffee exporter. As a result, coffee prices are going up.
Owner Kevin Clayton said he could have just raised drink prices at his 20-year-old business to cover the increase. But that would have hidden the reason behind it — and it wouldn’t have sparked the online debate that ensued when he announced his shop’s new tax on Instagram last week. The post has received nearly 4,500 likes and 1,143 comments to date.
“Why not spell it out and make it clear to people?” Clayton said. “Tariffs aren’t on countries, they’re on people and small businesses. We’re all affected by this.”
Village Wine and Coffee’s new tax — listed after Vermont’s 9 percent Rooms and Meals tax and Shelburne’s 1 percent local tax on receipts — specifically calls out the Trump administration’s tariffs on coffee-producing countries such as Brazil, Costa Rica and Indonesia. Clayton has applied it manually to all of the café’s coffee drinks. On a 16-ounce iced coffee ($3.25), the tax is 33 cents.
On the wine side of Clayton’s biz, tariff-related changes are instead reflected in each bottle’s retail price.
The difference comes from how those two industries have reacted to tariffs so far. Many wine distributors saw the increases coming and stocked their warehouses, Clayton said. While some of his customers’ favorite bottles are creeping up, he’s been able to adjust prices wine-by-wine and switch to cheaper options.
Coffee is more perishable, and its pricing is more dynamic, Clayton explained. “It’s immediate.”
Village Wine and Coffee uses beans from several roasters, including Burlington’s Brio Coffeeworks, Barre’s 802 Coffee and Oakland, Calif.’s Mr. Espresso. The latter two have already increased prices once, Clayton said.
802 Coffee’s Bob’s Senate Blend, a dark-roast favorite at Village Wine and Coffee, includes Brazilian beans. As of August 7, unroasted “green” coffee beans from the South American country are subject to a 50 percent import tariff — the highest of major coffee-producing countries, according to data from specialty green coffee importer Royal New York.
Brazil is responsible for 30 percent of coffee brought into the U.S., the New York Times wrote last month. Roasters could look to other countries, where tariffs are only 10 or 15 percent. But prices are in flux across the board as the market reacts to the changes.
“I’ve never seen anything like it,” Clayton said of the online response to his Instagram post announcing the tax. There, comments veered into not-so-civil debate about politics and economic policy. Some commenters questioned why the business couldn’t absorb a 10 percent increase and wrote that it was “price gouging” and “ripping off your customers.” Others thanked the business for its transparency.
In person, Clayton said customers have been supportive. “We’re lucky in Shelburne,” he added.
Clayton told Seven Days he wouldn’t remove the tax if a customer complained after looking at their receipt.
“I’d say, ‘I’m sorry, this is the reality, and I didn’t ask for it,’” he said. “Call your senator; call your representative.”
If coffee prices continue to go up, he’ll have to reevaluate whether 10 percent is enough in the tight-margined coffee biz. If the tariffs disappeared tomorrow, Clayton said he would eliminate the tax immediately.
While they’re in effect, “This is my little protest,” Clayton said.
Village Wine and Coffee, 5288 Shelburne Rd., Shelburne, 985-8922, villagewineandcoffee.com
