NCA: No cocoa tariffs helps chocolate makers
Domestic manufacturing can now remain competitive globally, the org says.
On November 14, the U.S. president signed an Executive Order modifying reciprocal tariffs that were previously announced on April 2. Several agricultural products will no longer be subject to the tariffs, including cocoa.
A recently released statement from the National Confectioners Association (NCA) remarked that the exemption of cocoa from tariffs was a positive move by the administration:
“The National Confectioners Association thanks President Trump for taking action to boost domestic manufacturing and reduce consumer costs by exempting cocoa inputs from reciprocal tariffs. The United States chocolate industry is a major contributor to the economy, fosters innovation in the food sector, and brings joy to Americans across the country. Exempting cocoa, which cannot be commercially grown in the United States, from reciprocal tariffs ensures that domestic chocolate manufacturing can remain competitive in the global marketplace," says NCA.
The order affects all countries, says Politico, even if they have struck trade deals to lower their "reciprocal" rates. The order also exempts other products that are not usually grown in the U.S., such as coffee, bananas, coconuts, pineapples, chestnuts, and cashews, as well as some spices such as cinnamon. Beef was also included in the list of products exempt from the tariffs.
The move comes as the president has been facing "blowback" for high prices at U.S. grocery stores, says CNBC: "Some distributors of beef, coffee, chocolate and other common food items have raised prices as Trump’s tariffs took hold this year, adding to pressure on household budgets created by decades-high inflation in recent years."
CNBC also reports that in October, Hershey executives noted they expected $160 million to $170 million in tariff expenses this year. This is on top of already record-high cocoa bean costs that pushed retail chocolate prices almost 30% higher from the prior year, according to Circana. In July, Hershey announced it would be raising its candy prices due to cocoa costs, informing its retail customers of a double-digit percentage increase.
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