Coffee Shop Adding 'Tariff Adjustment' to Bill Sparks Debate

Newsweek

5 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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A coffee shop has begun putting a "tariff adjustment" surcharge on customers' orders, according to Democratic Senator Catherine Cortez Masto.
The Nevada senator posted a picture of the receipt to X, which showed a 10-percent markup on a $4.50 order, alongside the caption: "Donald Trump claims other countries will pay his tariff taxes. Here's the reality in Reno."
Donald Trump claims other countries will pay his tariff taxes. Here's the reality in Reno: pic.twitter.com/wQ76XwgxL2 — Senator Cortez Masto (@SenCortezMasto) July 27, 2025
Cortez Masto did not specify whether she took the image or where it was taken. When approached for comment, a spokesperson for the senator told Newsweek that it was taken in a "locally-owned coffee shop" in Reno.
Why It Matters
The post has already amassed hundreds of thousands of views and set off a debate over whether this reflects the impact of President Donald Trump's tariffs on the American consumer or is simply a case of companies exploiting contemporary political issues to justify hiking their prices.
What To Know
Many major companies have already announced that they will be implementing price hikes to mitigate the impact of President Trump's tariffs, given the higher expenses those reliant on imported items will be forced to pay.
Shein, Walmart and Target are among those that have said the change may need to come into effect, and over half (54 percent) of the American companies surveyed by insurance company Allianz in May said they would have to raise prices to offset tariff costs.
However, amid episodic postponements and cancellations, as well as recently finalized trade deals with a handful of nations, Trump's tariffs have not yet translated into major widespread price increases. According to the minutes of the most recent Federal Open Market Committee meeting, members of the central bank's rate-setting body said that it could take some time before these increased costs are passed on and become visible to the consumer.
U.S. Sen. Catherine Cortez Masto (D-NV) speaks at the Nevada Democratic Party's election results watch party at Aria Resort & Casino on November 05, 2024, in Las Vegas, Nevada. Coffee in Berlin.
U.S. Sen. Catherine Cortez Masto (D-NV) speaks at the Nevada Democratic Party's election results watch party at Aria Resort & Casino on November 05, 2024, in Las Vegas, Nevada. Coffee in Berlin.
Ethan Miller // picture-alliance/dpa/AP Images
However, recent tariff increases on Brazil—especially significant for coffee shops—threaten to push up both the cost of beans and the beverage in the U.S.
Some in the comments of Senator Cortez Masto's X post made this point, while also backing her statement that the price increases serve as evidence of the impact of tariffs on everyday consumers. However, many doubted the authenticity of the receipt or accused the unnamed coffee shop of price gouging and taking advantage of political issues for financial gain. Others argued that businesses can spare customers such tariff charges by sourcing coffee domestically.
"This is just a coffee shop taking advantage of their customers under the guise of tariffs," one wrote. "How about naming this Reno business so people can quit supporting their predatory efforts?"
Similar outrage followed the move reportedly considered by Amazon in April to display how much of an item's final cost was due to tariffs. The company later said that this was only briefly under consideration for its Amazon Haul business, after the White House called this a "hostile and political act."
What People Are Saying
A spokesperson for Senator Catherine Cortez Masto told Newsweek: "This receipt is from a locally-owned coffee shop in Reno, Nevada. Nevada's small businesses run on razor-thin profit margins. These aren't large corporations, they're small businesses stuck with higher costs due to Trump's reckless blanket tariffs."
A commenter on the senator's post wrote: "The revenue from tariffs that is coming into our government to pay down debt is astronomical. Of course there will be a small cost past along if you purchase products from a tariffed country."
"That's not a tariff. That's just a coffee shop ripping off its customers," another said. "The tariff would be on the cost of the coffee beans at time of entry."
What Happens Next?
The dozens of countries that have not yet secured a trade deal with the U.S., including Brazil—America's top coffee-supplying nation—have until Friday to do so and bring down their tariff rates.
Speaking to Fox News on Sunday, Commerce Secretary Howard Lutnick said that there will be no further tariff extensions beyond August 1.
"No extensions. No more grace periods. August 1, the tariffs are set. They'll go into place," Lutnick said.