NORTH MANKATO — If anyone knows beans about the pain of the government tariffs on business, the Beans Coffee Company does. They paid $10,000 extra on a roaster ordered just two months before the U.S. Liberation Day tariffs went into effect.
The Supreme Court ruled Feb. 20 that the administration did not have authority to impose those tariffs. A federal judge in New York later ordered the creation of an automated refund system within 45 days — a system still under development and only partially complete.
This prompted a wave of refund claims from businesses across the country, including at least a dozen in Minnesota, the Star Tribune reported.
For smaller businesses, the impact has been tangible. Clay Sharkey, co-owner of Beans Coffee Company in North Mankato, described how the business faced higher costs when importing the specialized coffee roaster from Europe. The equipment was necessary for expansion of their roasting capabilities, and they were left without an alternative domestic option.
Sharkey said they had placed a down payment on the machine in early 2025, two months before tariff hikes on April 2, what the Trump administration called Liberation Day. By the time the equipment shipped, uncertainty remained about whether tariffs would apply or be overturned. Ultimately, the business paid about $10,000 in tariffs on the roaster.
U.S. companies paid up to $166 billion in tariffs imposed under President Donald Trump’s use of the International Emergency Economic Powers Act, beginning Feb. 1, 2025, according to estimates from Customs and Border Protection.
“We ended up paying the tariff, which largely consisted of that IEEPA tariff, and now we — knock on wood — should be aligned for a refund once Customs put their process of working through what refunds are owed,” he said.
He also described pricing pressures in the coffee market, noting that global coffee prices prior to being excluded from tariffs, rose significantly in late 2025, partly reflecting those tariff-related costs within the supply chain.
Despite those increases, his company “grinned and bore it for the first number of months,” choosing not to raise prices to remain competitive and continue growing a customer base
“We will definitely go and buy things in America when we can,” said Eric Poppler, Sharkey’s business partner and co-owner of Beans. “This machine really just does not exist domestically. We started the process of buying this two months before tariffs were a thing, or the new ones.”
Sharkey said they are now watching closely to see how the refund process unfolds. Based on current guidance, companies that paid tariffs have records on file through import documentation and may be able to submit claims through a forthcoming automated system, he said.
Local business leaders say the ruling provides relief but introduces new challenges. Andy Wilke, executive vice president of Greater Mankato Growth, said that while businesses are encouraged by the decision, the process of determining eligibility and securing refunds is expected to be complicated and time-consuming.
“We have been aligned with many other business groups (in) that we viewed those tariffs as an additional expense on businesses, which ultimately becomes an additional expense for consumers,” Wilke said.
He noted that companies can work with accountants and attorneys to track tariff payments and assess how potential refunds could affect their tax filings. He also emphasized the volume of imports and the complexity of supply chains could make it difficult to determine who ultimately qualifies for reimbursement.
Wilke said uncertainty surrounding the tariffs created planning difficulties for businesses that rely on imported equipment and supplies. Companies often had to make purchasing decisions months in advance without knowing the full cost impact, forcing them to build in financial cushions.
“It was a significant burden, and just businesses were very uncertain,” he said. “As far as what the tariff expense would be, the numbers seemed to change on a regular basis depending on the policy announcements that came out of the White House. It was very difficult to plan for.”
The U.S. Chamber of Commerce has advised small businesses to stay in close contact with financial and legal advisers as the process develops, noting that eligibility and procedures may continue to evolve.
While some larger retailers have suggested that refunds could eventually lead to lower consumer prices, it remains unclear when funds might be distributed or how broadly the benefits will reach, Wilke said.
In the meantime, area businesses are left balancing cautious optimism with ongoing uncertainty as federal agencies work to implement the refund system.