On Friday, cocoa, coffee, and sugar prices dropped as global markets responded to the U.S. "Freedom Day" tariffs imposed by President Donald Trump. The decline followed China’s announcement of retaliatory tariffs on U.S. imports. On Wednesday, Trump implemented a 10% tariff on most imports and levies exceeding 50% on some countries, triggering a global stock market selloff as nations like Canada and China prepared to retaliate. U.S. consumers of coffee and chocolate are expected to face higher prices, as major exporters like Ivory Coast face a 21% tariff on cocoa and Vietnam is hit with a 46% tariff on coffee.
As of 12:28 GMT, London cocoa futures fell 1.1% to USD 8,350 per metric ton, while New York cocoa declined 2.7% to USD 9,044 per ton. The U.S., as the world’s largest chocolate consumer, now faces tariffs of 20% (EU), 24% (Malaysia), and 32% (Indonesia) on cocoa butter imports. Although these tariffs could impact chocolate demand, cocoa price drops were limited due to concerns over Ivory Coast’s weakest mid-crop harvest in a decade. Arabica coffee futures slid 3% to USD 3.74 per pound, robusta dropped 3% to USD 5,228 per ton, raw sugar fell 0.6% to USD 0.19 per pound, and white sugar slipped 0.4% to USD 541.80 per ton, continuing the week’s downward trend.
