As of last week, the Swiss chocolate maker Lindt & Spruengli was considering a shift in production to the US to combat tariffs on exports from Germany and Switzerland, according to Bloomberg whose reporters wrote about a possible $10 million spend to swap German production of gold-wrapped chocolate Easter bunnies and Santas to the US. The company has a site in Stratham, New Hampshire.
While the US and European Union have locked in a deal at 15% tariffs, the US hit Switzerland with an unexpected 39% duty. For example, Lindt’s Lindor brand is made in Switzerland.
As of July 22, Lindt’s team experienced growth in North America which was behind expectations due to weaker consumer sentiment, according to the company’s first half of 2025 results.
The chocolate producer has had to increase prices (+16%) this year to offset recent record-high cocoa prices.
The chocolatier may weigh a manufacturing shift for products on the Canadian market to come in via Europe. Currently, products in the Canadian market come from a plant in Boston. However, a move from the US to Europe for the Canadian market may be aimed to circumvent retaliatory tariffs that Canada introduced on the US, according to Bloomberg. Lindt officials have been evaluating additional investments in the US for several years, but declined to comment on the specific plans, according to the article.
US chocolatier, Hershey also reported similar results in their recent earnings call, reported Expana (customer access only). Most recently, Hershey has made changes to its leadership, the team announced.
Tariffs, weather worries, and high prices have put a strain on producers of cocoa-derived products. What’s more, there’s been no more mention of tariff exemptions for cocoa. Plus, the West African crop worries have compounded as Expana (and other market watchers) have revised 2025/26 crop production downward.
West African weather remains a concern as tariffs impact cocoa and chocolate. US chocolate manufacturers may be at a disadvantage importing cocoa (near all-time highs) and paying 15% tariffs. Mexico can import cocoa, use domestic sugar, and send chocolate to the US under the US-Mexico-Canada Free Trade Agreement (USMCA FTA)—although there have been conflicting reports (customer access only). Another example: EU producers can get tariff-free cocoa and sell it to the US for 15%. However, there is still a question about who will pay these tariffs. Furthermore, the situation becomes more difficult if the European Union’s deforestation regulations (EUDR) are enacted—which would shrink the list of allowable cocoa producers.
If Lindt officials are to confirm the Bloomberg-reported shifts in production, one might assume a conservative and uncertain outlook on the current and future provisions of the USMCA FTA, according to Expana sources.
Adjacently, cocoa grinding statistics—a proxy for cocoa demand—in Q2 2025 were down across the board, reported Expana.
Image source: Adobe
Written by Ryan Gallagher
