The United States’ implementation of new tariffs on Ivory Coast’s exports has led to potential increases in cocoa prices, causing concern among global chocolate manufacturers. Ivory Coast, the world’s largest cocoa producer, announced the price hikes as a necessary measure to protect local farmers from the impact of the tariffs. An official from the Ivory Coast Ministry of Trade stated, “We have no choice but to respond to these tariffs imposed by the U.S. Our farmers work hard, and these tariffs threaten their livelihoods.
Increasing the price of cocoa is a necessary measure to ensure they are not unfairly affected.”
The announcement has raised concerns about increased costs for consumers and potential disruptions in the supply chain. The United States initiated the tariffs citing various economic grievances, leading to heightened tensions between the two nations. Ivory Coast plays a crucial role in the global cocoa market, contributing nearly 40% of the world’s supply.
The nation’s economy heavily depends on cocoa, making it vital for the government to protect this sector from harmful external economic policies.
Economic impact of US tariffs
The Ministry of Trade is currently in discussions with major cocoa exporters and stakeholders to navigate this challenge and mitigate potential losses for local farmers.
Further developments are expected as both nations continue to navigate this economic confrontation. The tariffs are expected to hobble several African economies that had long seen the United States as a welcoming market. Small-business owners like Dana Mroueh, who runs Mon Choco in Ivory Coast, fear the tariffs will badly hurt their businesses.
Mon Choco aims to create jobs and wealth at home by transforming raw cocoa beans into processed delicacies for export to the United States. Mroueh said, “We were hoping to start exporting within the next few weeks.” However, the tariffs have put her plans on hold. The impact of the tariffs extends beyond cocoa, with car parts from South Africa, apparel from Madagascar, and textiles from Lesotho also facing high levies.
The president has announced a 90-day pause on the reciprocal tariffs for most countries, but the uncertainty surrounding their implementation continues to cause concern among African businesses and economies.