American chocolate makers are facing a bitter challenge. New tariff policies under former President Donald Trump’s administration and a sharp rise in cocoa prices are squeezing small U.S. businesses that depend on imported cacao. These companies, including artisan brands like Fruition Chocolate Works in New York, say the cost of doing business is growing too steep. Since cocoa only grows near the equator—and only in small amounts in the U.S.—local chocolate producers rely heavily on imports. With cocoa prices rising 180% in the past year, the pressure is mounting.
Cocoa Crisis: U.S. Chocolate Businesses Hit Hard
Most Americans enjoy chocolate as a treat, but for small business owners like Dahlia Graham, it’s also a livelihood.
“This is the sole income for my husband and me,” said Graham, CEO of Fruition Chocolate Works. “We employ people. We’re trying to make it work and to continue to grow our business, but it’s like we’re getting squeezed—and squeezed and squeezed.”
Her company is part of a growing craft chocolate movement in the U.S., where small manufacturers source cacao directly from farmers and focus on high-quality, ethical production. But these businesses rely on affordable and consistent imports of raw cocoa beans—something now in jeopardy.
Cocoa Can’t Grow Just Anywhere
Cocoa beans grow best in hot, humid climates found roughly 20 degrees north and south of the equator. While Hawaii and Puerto Rico do produce small amounts of cacao, their supply is limited and expensive.
This means American chocolate companies must import the majority of their cocoa from countries like Ghana and Ivory Coast. However, recent changes in global trade and weather patterns have disrupted this process.
According to JPMorgan’s agricultural commodities strategist Tracey Allen, cocoa prices soared by 180% last year. Poor weather conditions and an outbreak of swollen-shoot virus in West Africa, the world’s main cocoa-producing region, caused a major supply drop.
“Cocoa prices were starting to come off of that high,” said Allen. “But ahead of ‘Liberation Day,’ things remained uncertain.”
Tariffs Add to the Trouble
Former President Donald Trump’s approach to tariffs, especially during his term, has included heavy import taxes on a wide range of goods. Supporters argue these tariffs protect American jobs and industries. But in the case of cocoa, they add extra costs to a product that the U.S. simply can’t grow in large quantities.
For chocolate makers, especially small artisan businesses, these costs can be overwhelming.
“They keep raising tariffs or introducing new ones,” said one chocolatier based in California. “But we don’t have an alternative source. There’s no Plan B for cacao.”
A Growing Demand Meets Shrinking Supply
While supply has tightened, demand for high-quality, ethically sourced chocolate continues to rise in the U.S. Consumers are becoming more aware of where their chocolate comes from and how it’s made. This trend has helped small bean-to-bar companies thrive—until now.
With costs surging, some businesses are being forced to raise prices or cut production. Others are holding on, hoping that policy changes or improved weather conditions will provide relief.
According to the National Confectioners Association, the U.S. chocolate market was worth $21 billion in 2023. A significant portion of that growth came from premium and specialty chocolate brands, many of which now face an uncertain future.
What Can Be Done?
Industry leaders are calling on the government to reconsider tariffs on essential imports like cocoa. They argue that such products should be treated differently from those that compete with American-made goods.
“This is about survival for small businesses,” said Graham. “We’re not asking for special treatment—we just need fair access to what we need to make our products.”
Some experts are also urging policymakers to invest more in domestic cocoa research. While U.S. production will likely never match West Africa’s scale, innovations in greenhouse growing or improved Hawaii farming could help diversify sources in the long term.
