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Pennsylvania Republicans in Congress are urging federal officials to lift tariffs on cocoa imports, warning that these duties could harm the state's significant chocolate industry. In a letter sent on Monday (June 30), nine lawmakers highlighted the potential impact on local jobs and production costs, emphasizing the reliance of U.S. chocolate makers on foreign cocoa.
The Hershey Company, based in Dauphin County, estimates that tariffs could add up to $20 million in expenses this quarter alone. The lawmakers specifically requested relief on cocoa beans, paste, powder, and butter, noting that cocoa trees only grow within 20 degrees of the equator, making domestic production impossible. They argued that the unique circumstances surrounding cocoa, combined with the industry's sensitivity to cost increases, necessitate an exemption from tariffs to protect American and Pennsylvanian workers.
According to ABC27, the Hershey Company is actively working with lawmakers and trade groups to influence the U.S. government to exempt cocoa from tariffs. Michele Buck, Hershey's CEO, stated that while the company is relatively less exposed to tariffs than other industries, the current levy on cocoa is a significant concern.
The tariffs are part of a broader trade conflict that has seen retaliatory measures from countries like Canada, which is a key player in cocoa processing. Hershey's CFO, Steve Voskuil, noted that the company is focusing efforts on influencing government action to change these tariffs, particularly those affecting cocoa.
As reported by Food Business News, Hershey anticipates that unmitigated impacts could reach up to $100 million per quarter in the latter half of the year. The company has developed robust mitigation plans to address these challenges, including pricing strategies and sourcing adjustments.
The ongoing tariff situation presents a significant challenge for confectionery companies as they navigate high cocoa prices driven by weather, disease, and strong consumer demand. Hershey and other chocolate manufacturers are advocating for tariff relief to sustain their operations and preserve Pennsylvania's chocolate legacy.