Investing.com -- Swiss chocolate manufacturer Lindt & Spruengli is adjusting its supply chain to protect its Canadian business from new tariffs, Reuters reported. The company plans to source all of its chocolate for the Canadian market from its European factories, sidestepping tariffs imposed by Canada in response to increased U.S. customs duties.
President Donald Trump recently announced a 25% tariff on imports from Mexico and Canada, taking effect from Tuesday. In response, Canadian Prime Minister Justin Trudeau confirmed that Ottawa would impose an immediate 25% tariff of its own.
Lindt & Spruengli currently produces 95% of the chocolates it sells in the United States at its five domestic factories. These factories also supply the Canadian market and could be impacted by the U.S. tariffs. Adalbert Lechner, CEO of Lindt, stated that the company is taking action to ensure its Canadian business, one of its top ten markets, isn’t negatively affected by the trade conflict.
Lechner revealed the company’s strategy following the announcement of Lindt’s full-year results. Currently, 50% of Lindt’s chocolates sold in Canada are sourced from the U.S., with the rest coming from Europe. Lechner confirmed that the company can source 100% of its Canadian supply from Europe, effectively bypassing the new tariffs.
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