Ivory Coast vows to find new cocoa buyers if Trump imposes tariffs

ABIDJAN: Ivory Coast will look for new markets for its cocoa, away from the United States, if the administration of President Donald Trump goes through with its threat to impose 15% tariffs from Thursday (Aug 7), two officials said.

AI Brief

Ivory Coast faces a new 15% U.S. tariff on cocoa, prompting officials to seek alternative export markets, especially in Europe.
The tariff ends duty-free access under AGOA, affecting a key sector that sends US$368M worth of cocoa annually to the US.
Officials see potential gains in cashew exports to the US, as Asian competitors face steeper tariffs.

The West African nation would have alternatives to consider in a fiercely competitive sector, one of the officials, from the agriculture ministry, added. "The United States is doing the opposite of what it should be doing," the official said.

The world's biggest cocoa producer currently exports up to 300,000 metric tons of cocoa beans to the U.S. each year, according to its Coffee and Cocoa Council.

That amounted to $368 million worth of beans in 2023, or about 10% of Ivory Coast's cocoa exports, according to the Observatory of Economic Complexity - making the U.S. its fourth largest market behind the Netherlands, Malaysia and Belgium.

Under revised terms announced last week by Trump and set to take effect on August 7, goods from Ivory Coast will be subject to a 15% tariff. Its cocoa and other goods are currently duty free under The African Growth and Opportunity Act - U.S. legislation enacted in 2000.

That is lower than the 21% rate Trump initially announced for Ivory Coast in April, but still significant enough for officials to look to other markets, two government officials said.

"We will seek new markets elsewhere to obtain tariffs that facilitate our exports and make us competitive. Today, competition between us exporting countries is fierce, and we are looking for cost reductions and customs advantages to facilitate our exports," the official at the agriculture ministry said.

An official at Ivory Coast's Coffee and Cocoa Council - which regulates and promotes the national cocoa sector - said Europe would be the best alternative, though neither official identified specific countries Ivory Coast would target for sales.

Both officials asked to remain anonymous to allow them to discuss policy changes that were in flux.

"It will be up to the American industry to adapt to be competitive," the CCC official said.

Some of the new U.S. tariffs could play to Ivory Coast's advantage, the agriculture ministry official said.

Ivory Coast is also the world's biggest cashew producer, and steeper tariffs planned for Asian producers Vietnam and India could boost its cashew exports to the United States, the official added.

"Currently, we export less than 5% of our kernels to the United States, but our short-term ambition is to reach 30-40% of processed volumes," they added.

"It's ambitious but achievable, and these new tariffs will help accelerate this export growth because we are less taxed than some competitors."