Text by Nick Meador. Last updated Feb 3, 2025.
NOTE: This article will be updated as more information come up on the topic.
In the fall of 2024, president-elect Trump announced an intention to impose tariffs on imported goods from certain countries.
Imports from Mexico and Canada would get a 25% tariff, and goods from China would get 10%.
The stated reasons have varied from wanting to address trade deficits (where country A buys more from country B than B buys from A), to trying to slow illegal drug trafficking (especially fentanyl) and migration from Mexico.
The tariffs have been widely misunderstood as something that would be paid for by foreign countries or companies that would therefore act as a kind of punishment on them.
In fact tariffs are paid for by the importer and become part of the cost of goods, which American businesses have little choice but to pass on to customers through increased prices.
Those who understand this have widely criticized such blanket tariffs, which are different than a tariff applied to a specific range of products to achieve a specific goal (e.g., protecting a specific American industry or niche).
Blanket tariffs would have a disastrous affect on the American economy, causing even more of the inflation we've had to deal with over the last few years.
Not only that, but Mexico and Canada have promised to institute retaliatory tariffs on American goods imported to their countries, further harming American companies. In such a situation, everyone would lose. And there have been similar threats that the EU and UK would be next.
Currently Soul Lift Cacao carries one Mexican ceremonial cacao variety. Mitla is grown in the southern state of Chiapas and toasted over wood fire in Oaxaca. As of February 3, 2025, the retail price is $64.99. And it already has less of a mark-up than our other products, meaning the price we pay for it is higher than average due to a higher rate that Mexican farmers are paid for sustainably grown cacao seeds.
If there was a 25% tariff on imports of Mitla cacao, we'd have to pay that to U.S. customs every time we receive a shipment. And in order to still cover our operating expenses as a small, independent business, we'd have to raise our sale price substantially.
The effect would be more drastic on our model of sourcing authentic ceremonial cacao from indigenous groups in places with pre-Columbian cacao history, when compared to more exploitative models that just import seeds to process in a factory. The tariffs wouldn't legitimately affect their operating costs as much.
Whereas with a 25% tariff, the price of a 1lb block of Mitla would jump to at least $80 USD, maybe more. (NOTE: To better understand our pricing model and how it's more ethical than "fair trade," read this article.)
At time of writing there's no indication that tariffs might be imposed on imports from Guatemala or Costa Rica, where our other varieties are grown and prepared.
And as of February 3, the U.S. and Mexico are negotiating to potentially prevent the tariffs from being instated on either side.
I'll be tracking this topic to keep you informed, because transparency is one of the core values behind Soul Lift Cacao.
Thank you as always for supporting our model of allyship for indigenous cacao producers who carry lineage of cacao stewardship going back thousands of years.
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