President Donald Trump’s tariffs on cocoa imports are driving up prices for U.S. chocolate makers, making Canadian and Mexican rivals extra aggressive within the $25-30 billion U.S. chocolate market.
Major producers like Hershey (HSY.N) say tariffs might price the corporate $100 million within the second half of the yr. Smaller corporations equivalent to Taza Chocolate in Massachusetts have been hit notably arduous, paying tens of hundreds of {dollars} in duties.
“For an organization our measurement, that’s our revenue margin gone,” stated Taza founder Alex Whitmore, including that value hikes are doubtless.
Customs information exhibits Canadian chocolate exports to the U.S. jumped 10% within the first 5 months of 2025, with multinational contractors like Barry Callebaut benefiting from manufacturing in Canada and Mexico.
Industry sources say the tariffs are already reshaping provide chains. Mexican and Canadian producers are receiving elevated requests from U.S. corporations to provide chocolate below contract.
