GAINESVILLE, Fla. — Sweetwater Organic Coffee Company, known for importing beans from countries like Peru, Colombia and Guatemala, is feeling the financial strain of sweeping tariffs announced earlier this year by former President Donald Trump.
The Gainesville-based coffee co-op has paid more than $1 million in additional costs to continue importing its products. But co-owner Tripp Pomeroy says the company’s business model helped them weather the economic hit.
“Instead of rushing out when the market hit a high in February and March and just doing a one-time price increase, we stopped and regrouped,” Pomeroy said.
In response, Sweetwater transitioned to a dynamic pricing system, allowing them to gradually adjust prices as higher-cost inventory arrived.
“What this system has allowed us to do is roll out incremental increases only as the higher-cost inventory hit our warehouse,” Pomeroy explained.
While Sweetwater is adapting, the broader conversation around tariffs continues. Wentong Zheng, a professor of law, says some businesses actually benefit from tariffs, using them to boost competitiveness.
In November, the U.S. Supreme Court is set to hear arguments on whether the International Emergency Economic Powers Act (IEEPA) grants the president authority to impose tariffs.
“If the Supreme Court strikes down the tariffs, it’s a signal that the court is not going to rubber-stamp the administration’s claim of presidential emergency authority,” Zheng said.
If the tariffs are overturned, the federal government could be required to refund up to $1 trillion. Zheng warns that a ruling in favor of the Trump administration would mark an unprecedented expansion of executive power.