Bay Area chocolatiers worried as potential tariffs could add to surging cocoa prices
Surging cocoa prices worldwide and the ongoing trade war between China and the U.S. are impacting local chocolatiers in the Bay Area.
For 24 years, Wendy Lieu, who started making chocolate as a teenager out of her family kitchen, has been honing her craft and growing her small business as a chocolatier in San Francisco.
"Finally, 11 years ago, we were able to open up this space on Folsom Street where we manufacture all the chocolate and ship all the chocolates from here," said Lieu.
Lieu said, over the last six months, her supplier raised the price of cocoa, one of the key chocolate ingredients by 20%, then 40%, and then an additional 20%.
She resisted for as long as she could but had to raise prices for the first time in three years.
"I've been noticing that consumers are still purchasing but spending a lot less," said Lieu.
The price of cocoa surged in 2024 and again in 2025. Analysts say the global shortage is driven by climate change and severe weather disruptions. And potential tariffs on Ivory Coast products, such as cocoa, could drive prices up even more.
"The wholesale prices of cocoa were $9,000 a ton. That's up four and a half times from three years ago," said Joseph Balagatas, professor of agricultural economics.
Rising cocoa prices, plus the impact of tariffs on goods from China, like the packaging Socola Chocolatier uses, have made the immediate road ahead bumpy.
"We don't know if there's going to be any savings now because of tariffs, and we haven't seen what that's going to look like. It's hard to say that we are going to raise our prices by X, Y or Z at this moment," said Lieu.
Lieu is absorbing as much of the additional costs as possible, and profit margins have thinned.
She has avoided layoffs at her Folsom Street and SFO location in terminal three but may have to cut hours for her 10 employees if sales continue to slow down.
"It's really important to continue to support small businesses in our communities. It could be the difference between people staying open or closing," said Lieu.
Lieu said many chocolatiers are desperately trying to stay afloat and that asking for support is better now, before it's too late.
