Swiss chocolate giant Lindt & Spruengli said that some of the production will be moved from the US to Europe to avoid retaliation tariffs from Canada, one of the largest markets.
President Trump's strict 25% tariffs in Canada and Mexico, as well as 20% collection in China, came into effect in the middle of the night Tuesday.
Canadian Prime Minister Justin Trudeau said Monday that he would retaliate 25% tariffs on $15.5 billion in American goods in the middle of the night, with plans to keep them up until the US overturns trade policies.
Large companies, including Honda and Volkswagen, reportedly discussed plans to boost US manufacturing to avoid Trump's tariffs.
Lindt is one of the first to announce a production shift from the US to avoid retaliatory tariffs from Canada.
Lindt already produces 95% of the chocolate it sells in the US at five domestic facilities.
These US-based factories supply Lindt products to Canada, so sweets and snacks can be hit by Trudeau's import duties.
In a statement, Lindt told the Post that Canadian businesses are taking action to ensure that tariffs are not hindered.
“These include the possibility of supplying countries such as Canada and Mexico from European production facilities,” a Lindt spokesman told the post.
Currently, half of Lindt's Canadian supply comes from the US. The other half is produced in Europe.
“All the amount we are currently raising for Canada can move to Europe,” CEO Adalbert Lechner said after Lindt reported full-year revenues on Tuesday.
“We can source 100% from Europe,” he told Reuters.
However, the company said it did not expect it to affect US production as it plans to grow in the US market, a Lindt spokesman told the post.
Lindt was in a hurry to send US-made snacks across Canadian borders and stockpile inventory, allowing them to have a buffer period to modify their supply chain.
Martin Hug, the company's chief financial officer, said it would be slightly more expensive to transport chocolate products from Europe from Europe than to send them from the US.
However, he added that it still costs more than diverting additional costs under Canadian import duties.
“We expect only a small impact, cost,” the spokesman told the post.
Hug said the shift to European manufacturing could help the Lindt brand avoid backlash from Canadian consumers.
With post wire
