US President Donald Trump’s tariffs on cocoa imports are creating difficulties for American chocolate manufacturers. This increases their costs and reduces their competitiveness compared to companies from Canada and Mexico, which do not pay such tariffs. This was reported by Reuters.
The Donald Trump administration’s tariffs, which are intended to stimulate American production, are hitting the US chocolate industry hard. Due to new tariffs on imports of cocoa beans and processed cocoa products — from 10 to 25%, and from August 1 to 35% — American producers are forced to pay significantly more for raw materials that cannot be grown in the United States itself. This substantially undermines their competitiveness compared to companies from Canada and Mexico, which, thanks to the USMCA agreement, export chocolate to the US without tariffs, regardless of the source of the cocoa.
Large manufacturers such as Hershey estimate their additional costs due to tariffs at $100 million in just six months. The company, which has factories in the US, Canada, and Mexico, has already announced the need to work with the US government to obtain tariff exemptions.
Smaller manufacturers, such as Taza Chocolate in Massachusetts, are even more vulnerable: the company paid over $24,000 in tariffs for a single container of cocoa from Haiti. It may lose profitability due to additional costs. Its founder admitted that he initially considered moving part of his production to Canada but decided against it due to the high risks and costs involved.
Canadian and Mexican companies, on the other hand, are benefiting. For example, chocolate exports from Canada to the US rose by 10% in the first five months of 2025. Large contract manufacturers such as Barry Callebaut, which has facilities in three North American countries and can flexibly adapt to tariff conditions, are particularly benefiting. The CEO of the Mexican Chocolate Manufacturers Association expressed a similar view, noting the growing interest of American companies in manufacturing in Mexico.
Meanwhile, the cost of cocoa on the world market has tripled over the past year due to unfavorable weather and disease in the main producing countries — Côte d’Ivoire and Ghana. This further complicates the situation for American companies, which are already forced to raise prices for their products. For example, Hershey has already implemented a significant price increase for its products for retail chains such as Walmart and Kroger, while Taza has increased wholesale prices by 10% and warns of further price increases.
Ultimately, Trump’s strategy of imposing tariffs on cocoa imports creates a paradox: instead of supporting local producers, it stimulates production outside the US, particularly in Canada and Mexico. This could change supply chains and have long-term consequences for the industry in the world’s largest chocolate consumption market, estimated at $25-30 billion.