Award-Winning Wisconsin Coffee Roaster Tells True Cost of Tariffs

When you’re drinking your morning coffee, do you think about the person who grew and picked the beans? If you’re sipping Wonderstate Coffee – chances are the answer is yes. And that’s by design. Wonderstate is based in Viroqua and it’s become more than an award-winning Wisconsin coffee roaster. It’s also a model for how small businesses can do well by doing good. But can it sustain this success while now dealing with the true cost of tariffs? 

Wonderstate Coffee President and CEO TJ Semanchin joins Todd Allbaugh, host of The Todd Allbaugh Show, to talk about building a business rooted in quality, sustainability, and justice. He also discusses how the Trump administration’s tariffs are threatening to hurt local businesses.  

We’re getting hit with a 10% tariff on all our coffee. And coffee, by the way, doesn’t grow in the U.S. in any meaningful volume. We have to import it. This is a direct tax on small businesses like ours.

Wonderstate Coffee’s TJ Semanchin

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Watch the entire discussion here:

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The True Cost of Coffee

Fair trade is more than just a label. It’s a commitment to equity. But it’s not always cheap.

“When you pay a couple bucks more for higher-quality, ethically sourced coffee, you’re not just getting better flavor—you’re helping farmers build stable, dignified lives,” Allbaugh explains, sharing his own experience working with coffee growers in El Salvador.

“You nailed it. Farmers growing coffee at higher elevations in remote areas often don’t have trucks, roads, or access to global markets,” Semanchin says. “Buying directly and paying fair prices allows them to stay on their land, feed their families, and invest in quality.”

Tariffs and Trouble at Home

But while Wonderstate is doing the right thing abroad, trade policy here at home is making it harder to keep the mission alive.

“We’re getting hit with a 10% tariff on all our coffee. And coffee, by the way, doesn’t grow in the U.S. in any meaningful volume. We have to import it. This is a direct tax on small businesses like ours,” Semanchin explains.

And it’s not just Wonderstate. He says there are other small, family-owned companies across Wisconsin that rely on imported goods. Many are facing similar challenges due to the tariffs. 

“These aren’t faceless corporations,” he stresses. “These are moms and dads who found a niche, created a product, and built their life around it.”

Climate and Coffee Rust

If tariffs aren’t enough, climate change is adding more pressure to already fragile supply chains.

“Historic droughts and rising temperatures in Brazil have driven global coffee prices to record highs,” Semanchin says. “Farmers are also facing diseases like coffee leaf rust, which is forcing them to move to higher altitudes or even give up coffee altogether. Some may switch to growing coca, and when that happens, organized crime moves in.”

The Role of USAID

Another concern? Cuts to the U.S. Agency for International Development (USAID), which has long supported small coffee farmers through training, building up infrastructure, and providing marketing support.

“USAID isn’t charity,” Semanchin explains. “It’s infrastructure. It helps stabilize rural economies in politically volatile regions. When we’re gutting it, we don’t just hurt farmers. We undermine the very markets we rely on. And we create holes that bad actors are quick to fill.”

Two Decades of Ethical Brewing

Wonderstate Coffee is celebrating its 20th year and has grown from a small wholesale roastery to a beloved regional brand with cafes in Viroqua, Madison, and Bayfield. But at the heart of its mission is a deep respect for the farmers who grow the coffee.

“For our first 10 years, we were strictly wholesale,” Semanchin shares. “We import coffee directly from small farmers in Africa, Central and South America. Supporting those farmers has always been at the core of our mission.”

Semanchin’s own journey started in the coffee lands of Costa Rica, where he studied rural development and learned firsthand how farmer-owned cooperatives can empower communities.

“These are democratically controlled, farmer-owned operations,” he explains. “The contrast between that and the way bananas were historically grown – controlled by multinational corporations – is night and day.”

The Wonderstate motto, “Stay Curious,” may remind us that every cup of coffee tells a story—of climate, family, fairness, and now politics. You’re not just paying for better flavor. You’re paying for dignity, sustainability, and a future where the people behind your brew are seen, supported, and empowered.

And as any good coffee drinker knows, it’s worth every penny.