As the Easter season approaches, a time traditionally bustling with activity for Switzerland’s chocolate industry, the atmosphere has taken on a bittersweet tone due to rising cacao prices and the imposition of new U.S. tariffs on imports.
The recent shift in America’s trade policy has caused a sense of “shock” among many Swiss businesses, including chocolatiers, watchmakers, and the government. However, the overall sentiment seems to be one of cautious observation, with many adopting a “wait-and-see” approach in response to these changes.
At the Festichoc chocolate festival in Geneva recently, the tariffs announced by the Trump administration were frequently discussed. Nonetheless, these concerns did not appear to dampen the festive spirit surrounding Switzerland’s renowned chocolate creations. Julie Jammes, the marketing manager for Canonica, a Geneva-based chocolatier with outlets in San Francisco, conveyed the uncertainty felt within the company. “We’re waiting a little longer, but it’s clearly a shock for us,” she explained.
This sentiment aligns with Switzerland’s wider strategy. Despite the significant 31% U.S. tariff now applied to Swiss goods, surpassing the 20% rate for exports from the European Union, the Swiss government is opting for caution. They have issued warnings about how these tariffs could impact essential Swiss sectors such as watches, coffee capsules, cheese, and chocolate.
The government stated, “An increase in trade tensions is not in Switzerland’s interests. Countermeasures against US tariff increases would entail costs for the Swiss economy, in particular by making imports from the USA more expensive,” highlighting that there are currently no plans to implement retaliatory actions. Additionally, it was noted that Swiss exports to the United States faced an immediate 10% tariff increase, with another 21% set to take effect shortly.
The United States ranks as Switzerland’s second-largest trading partner, following the European Union, a collective entity that nearly envelops the affluent Alpine nation. Over the past two decades, U.S.-Swiss trade in goods and services has seen remarkable growth, quadrupling in scale. Despite this, Switzerland abolished all industrial tariffs on January 1 of the previous year, allowing for 99% of U.S. goods to enter Switzerland free of duties.
At Festichoc, the mood remained animated as visitors indulged in chocolate samples and admired elaborate chocolate sculptures of Easter bunnies and eggs.
Jammes from Canonica expressed hopefulness that their dedicated U.S. customer base would remain loyal, despite acknowledging the financial strain the tariffs could impose on consumers. She remarked, “I put myself in the consumer’s shoes” and questioned the logic of paying significantly more for products due to these changes. “It’s still a very complicated issue,” she added.
The association representing the Swiss chocolate industry, Chocosuisse, voiced its disappointment with the tariffs, though it retains confidence in its robust domestic market. Notably, the Swiss have one of the highest rates of chocolate consumption globally, averaging over 10 kilograms (22 pounds) per person annually.
Chocosuisse emphasized, “It is completely incomprehensible that Switzerland is targeted by these tariffs,” underscoring how seriously they are taking the situation. They expressed concern over the substantial impact these measures would have on exports to the U.S., branding them as a significant barrier.
Geneva chocolatier Philippe Pascoet shared his concerns about recent spikes in cocoa prices over the last half-year and noted the historical challenges smaller producers face in the U.S. market. “It has always been complicated to send chocolate to the United States, just for sanitary reasons,” he explained, referencing the strict import controls and how customs hurdles had long been a challenge for online orders destined for American consumers.