How U.S. Tariffs Are Reshaping the Chocolate Industry: Winners and Losers
Imagine walking into your favorite store to grab a chocolate bar, only to find the price has jumped significantly. Behind that price hike lies a complex web of U.S. trade policies, tariffs, and global supply chains. For companies like MrBeast’s Feastables, these tariffs are more than just a nuisance—they’re a game-changer.
In a recent statement, MrBeast (Jimmy Donaldson) revealed that new tariffs have made it “way cheaper” to produce his chocolate bars outside the United States. His claim highlights a growing issue: U.S. tariffs on cocoa and other raw materials are reshaping the chocolate industry, forcing companies to rethink their production strategies. But what does this mean for consumers, businesses, and the global economy? Let’s dive in.
The Tariff Problem: What’s Driving Up Costs?
Cocoa and the Global Supply Chain
Cocoa, the lifeblood of chocolate production, is primarily sourced from West Africa, with Côte d’Ivoire and Ghana supplying over 60% of the world’s cocoa. The U.S. imports nearly all its cocoa, as domestic production is negligible. Recent tariffs, introduced during the Trump administration, have added a 20%+ levy on imported cocoa and other raw materials.
These tariffs were designed to protect domestic industries, but for chocolate manufacturers, they’ve become a financial burden. Cocoa prices have already surged to nearly $10,000 per metric ton in 2025 due to climate change and crop diseases. Adding tariffs to the mix has made U.S.-based production increasingly unsustainable.
Sugar and Milk: The Hidden Costs
It’s not just cocoa. Sugar and milk, essential ingredients in chocolate, are also affected. The U.S. imposes strict import quotas and tariffs on sugar to protect domestic farmers, keeping prices higher than global averages. Meanwhile, rising inflation and feed costs have driven up the price of milk. Together, these factors create a perfect storm for chocolate manufacturers.
Why Companies Are Moving Production Abroad
Labor Costs and Tariff-Free Zones
Labor costs in the U.S. are significantly higher than in countries like Ghana or Indonesia, where wages for cocoa workers are a fraction of U.S. rates. Additionally, many countries benefit from free trade agreements or lower tariffs when exporting to major markets like the European Union.
For companies like Feastables, which already incur high costs due to ethical sourcing, moving production abroad offers a way to stay competitive. As MrBeast put it, the tariffs are a “random price hike” that makes domestic production “brutal.”
Ethical Sourcing vs. Cost-Cutting
Feastables prides itself on using fair trade-certified cocoa and paying farmers a living wage. However, the added cost of tariffs forces companies to make tough choices. Moving production abroad allows them to maintain their ethical standards while avoiding the financial strain of U.S. tariffs.
The Broader Implications
Impact on Small Businesses
While large companies like Hershey can absorb higher costs or shift production, small businesses are struggling. Specialty chocolate shops and small-scale manufacturers often lack the resources to navigate these challenges, leading to price hikes or reduced product offerings.
Ethical and Environmental Concerns
Tariffs could also undermine efforts to promote ethical sourcing. If companies prioritize cost-cutting over sustainability, it could lead to increased exploitation of cocoa farmers and environmental degradation in cocoa-producing regions.
What Can Be Done?
Policy Changes
Policymakers need to reconsider the impact of tariffs on industries that rely on imported raw materials. Targeted exemptions for cocoa and other essential ingredients could help alleviate the financial burden on manufacturers.
Consumer Action
Consumers can play a role by supporting brands that prioritize ethical sourcing, even if their products come at a higher price. By choosing fair trade-certified chocolate, you’re helping to ensure that farmers are paid fairly and that sustainable practices are upheld.
The U.S. tariffs on cocoa and other raw materials are reshaping the chocolate industry in profound ways. For companies like MrBeast’s Feastables, these policies have made it cheaper to produce chocolate bars abroad, raising questions about the future of domesticmanufacturing.
As consumers, we have the power to influence the market by supporting ethical brands and advocating for fair trade policies. Let’s ensure that the chocolate we love doesn’t come at the expense of farmers, the environment, or our economy.
Call to Action
Want to make a difference? Look for fair trade-certified chocolate the next time you shop. And don’t forget to reach out to your representatives to advocate for trade policies that support ethical and sustainable practices.
