Pennsylvania Lawmakers Seek End to Cocoa Tariffs Amid Price Hikes
As the Trump administration’s tariffs threaten to push chocolate prices up, Pennsylvania lawmakers would like a sweet break. Nine members of the state’s Republican Congressional delegation sent a letter Monday requesting an end to tariffs on unfinished cocoa and chocolate imports.
Fueling Domestic Industry
“These imported products fuel a thriving domestic chocolate manufacturing industry that employs tens of thousands of Americans across this country, many of them in Pennsylvania,” the lawmakers said in the letter, which they sent to the Office of the United States Trade Representative.
Impact on Hershey and Pennsylvania Economy
The Hershey Company, one of the world’s largest chocolate producers, is based in Dauphin County and employs thousands in the Midstate.
In May, the company said tariff expenses could cost it an additional $15 to $20 million on cocoa this quarter. It mentioned tariffs 14 times while presenting its quarterly report.
Projections earlier in the year also estimated Pennsylvania could lose as much as $200 million in chocolate exports as the U.S. ramped up its trade battle with Canada.
Specific Products Targeted for Tariff Relief
The lawmakers specifically asked for relief on:
- Cocoa beans
- Cocoa paste
- Cocoa powder
- Cocoa butter, fat, and oil
Rationale for Exclusion
They noted cocoa trees only grow within 20 degrees of the equator, meaning American industries rely entirely on foreign imports to produce chocolate.
“Given the unique circumstances surrounding cocoa – the inability to produce it domestically, the sensitivity of industry to cost increases, and the significant domestic manufacturing base it supports – we urge you to protect American and Pennsylvanian workers by excluding these products from tariffs,” the lawmakers said.