Cocoa prices to hike as President Donald Trump announces 10% tariffs on all USA imports
The tariffs have sparked concerns about inflation and potential disruptions in global trade.
GLOBAL – The cocoa industry is expected to increase its prices as Donald Trump, President of the United States, has announced a universal minimum tariff of 10% on all goods imported to the USA.
The world’s top suppliers of cocoa beans, the Ivory Coast and Ghana, were slapped with retaliatory tariffs of 21% and 10%, respectively, on all imports brought into the USA, effective April 5, 2025.
According to the USA Department of Agriculture’s Foreign Agricultural Service, the United States is the world’s leading importer of chocolate and cocoa products, importing nearly US$4 billion in 2023.
Since cocoa beans require a tropical climate to grow, the United States must import nearly all cocoa it needs to meet domestic demand.
However, Hawaii is the only USA state capable of growing the crop, but its production capacity falls below USA manufacturers’ requirements.
Finished chocolate products from leading European producers are also subject to additional levies: 20% for EU nations, 31% for Swiss chocolate, and 10% for chocolate from the United Kingdom.
As reported by Bloomberg, London cocoa futures for May delivery traded more than US$500 a ton lower than the New York contract.
Tariffs could deal a blow to USA chocolate makers, making the cost of supplies relatively more expensive than in other regions.
Ignacio Canals Polo, a Bloomberg Intelligence analyst, said, Tariffs are likely to be mostly passed through to consumers, who have already been facing waves of price hikes amid elevated cocoa prices.
“That means chocolate makers could see fewer sales, even as the overall hit to demand may not be big enough to curb the input costs of their raw cocoa.”
The EU responded by imposing retaliatory taxes on USA food and beverage imports. It stated that it would introduce levies on €26 billion (US$28.31 billion) worth of USA goods, escalating trade tensions between the two economic powers.
European Commission President Ursula von der Leyen defended the countermeasures, calling the US tariffs an “unjustified trade restriction.”
“The European Union must act to protect consumers and businesses. The countermeasures we take today are strong but proportionate,” von der Leyen stated.
The move includes the re-imposition of previously suspended tariffs on products such as bourbon whiskey and additional duties on other spirits, makeup, and essential oils.
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