Hershey’s Seeks Tariff Exemption For Cocoa Amid Rising Costs
The Hershey Company is calling on the White House to exempt cocoa from tariffs as escalating trade tensions threaten to raise chocolate prices.
The manufacturer of iconic brands like Kisses and Almond Joy reported to investors that ongoing tariffs could cost the company between $15 million and $20 million during the second quarter alone, with potential cumulative costs nearing $100 million in the latter half of the year. But how does this affect us?
If Hershey’s request for a tariff exemption on cocoa doesn’t go through, U.S. shoppers could see higher chocolate prices, as the company may pass those extra costs along. Translation: your favorite chocolate treats could get a little less affordable. Eggs, and now chocolate? We can’t catch a break these days.
According to Michele Buck, Hershey’s CEO, “Cocoa cannot be grown in the United States, and thus, we are engaging with the U.S. government to seek an exemption.” The company is collaborating with lawmakers and trade groups to advocate for this tariff exclusion, particularly as they face additional challenges from Canada’s retaliatory tariffs.
Hershey relies heavily on cocoa imports from the Ivory Coast and Ghana (FYI, these two markets are the world’s leading cocoa producers). While cocoa prices have stabilized from last year’s highs, they remain elevated due to weather-related issues and strong consumer demand.
Hopefully Hershey and the government can work something out, otherwise, customers can expect to see a rise in prices in the near future.
