Trump's tariffs devastate American chocolate industry
- American chocolate firms face challenges due to tariffs that impose fees on cocoa imports.
- Canadian and Mexican companies benefit from tariff-free imports and exports under the USMCA.
- Consequently, US chocolate manufacturers are experiencing significant financial impacts, prompting concerns within the industry.
In July 2020, the US-Mexico-Canada agreement facilitated tariff-free trade for finished chocolate between Canada, Mexico, and the United States, resulting in significant competitive disadvantages for American chocolatiers. US President Donald Trump’s global tariffs, initially announced in April of the same year, have imposed heavy import fees on cocoa beans from countries like Haiti and the Dominican Republic. This compounded financial strain has forced companies such as Taza Chocolate in Massachusetts to absorb costs that eliminate their profit margins. Industry leaders like Hershey anticipate substantial financial losses, which could total $100 million in just the latter half of the year. These tariffs have created a climate where rival manufacturers based in Canada and Mexico can benefit by importing cocoa without the same tariffs American competitors face, thus putting them in a stronger market position.