Tariffs and trade…which way?
Tariffs and trade is the most sensational news out of North America this April. Import customs tariffs have been put into effect by Presidential Decree.
Doesn’t seem to be a big issue for foreign non – US producers, right? After all, it is not likely that the US purchaser will find alternative goods made in the US to resort to. Secondly, the payments dont affect your local producer prices, therefore net effect on local production is neglible, if not entirely zero.
The globe is an interlinked village of producers and consumers. Any changes in consumption in one end is likely to affect the production choices on the other end, through a network of intermediaries.
Africa’s trade balance with the US currently is a whooping USD 7 billion surplus. Main exports are minerals , petroleum, assembled vehicles and agricultural products. Cocoa , and its constituent extracts, comprise a main export commodity from the West Coast to the US. Raw organic essential oils are a smaller yet growing constituent of the desired commodities by the US consumer.
In all, while the US imports were USD 34 billion of goods from Africa, the US re-exports atleast USD 2.5 billion of agricultural goods. This means the US has substantial reliance on Africa exports.
In otherwords, your favorite chocolate bar, made in the US, now comes back to you with a higher price tag. This is simply because the cocoa , butter and powder, that went into the US will be sur-charged a customs tariff. In all this, the quality of the chocolate will not be changed. And neither will the benefits to the cocoa farmer, or the importers, on both sides.
Who does it affect, anyway?
This affects the average consumer in the territory of the US. They will have to dig deeper to acquire goods sourced from other territories into the US.
Only the US Treasury will see a positive change, an extra jingle in the bag. Tariffs and trade do mix, yes, but the benefits may be limited to the national purse.
We are here to encourage you. Yes, you, the local user of cocoa extract, butter and powder, or of other essential oils and extracts. Switch to the local alternative. Pure organic extracts made locally. We are here to help relieve the bit of tariff effect that we can, all the while ensuring your supply of authentic ingredients for your use.
