The Secret Tariff behind the Tariffs - Running a European Candy Business during a Tariff War

Tariffs & Treats: How Import Taxes Are Affecting Our European Candy Business in California

When you think of candy, you probably imagine joy, nostalgia, and a sugar rush—not taxes. But for us, running a California-based candy business that imports sweets from Sweden, Belgium, Spain, Norway, Germany, and Finland, tariffs have become a not-so-sweet part of our daily operations.

What Are Tariffs—and Why Do They Matter?

Tariffs are taxes placed on imported goods by the U.S. government. For candy and chocolate products from Europe, these can range from 5% to over 25%, depending on the ingredient, country of origin, and trade agreements in place (or lacking).

For example:

• Swedish gummy candy is typically hit with a 5.6% duty on the CIF (Cost, Insurance, Freight) value.

• Chocolate from Belgium or Germany containing milk and sugar may face up to a 10%–18.6% tariff, depending on the product classification (HS code).

• Specialty items like liquor-filled chocolates or candies with high dairy content can incur combined tariffs and fees exceeding 25%.

Who Pays These Tariffs?

We do—at first. Tariffs are paid by the importer of record, which is us. That means when our candy shipments land in the U.S., we pay those extra charges before anything can clear customs. These added costs go directly into our Cost of Goods Sold (COGS).

Let’s break it down:

• A €1.50 bag of Swedish candy ($1.60 USD in a strong-dollar year) now costs us over $2.00 after tariffs and shipping.

• Multiply that across hundreds of SKUs and thousands of pounds of inventory, and our COGS has increased by 15–30% just due to tariffs alone.

While we absorb as much as possible, some of these increases do get passed on through slightly higher prices or reduced promotions.

💸 The Secret Tariff Behind the Tariffs: A Weak Dollar

If official tariffs weren’t enough, there’s another silent cost hitting importers hard in 2025: the U.S. dollar has weakened nearly 20% against the euro.

In 2023, 1 euro cost about $1.05. In 2025, it’s closer to $1.25 or more. That means we now pay 20% more just to convert dollars into euros to buy the same candy.

That’s a hidden 20% “currency tariff” on top of actual tariffs.

Example:

• A €2.00 chocolate bar that used to cost $2.10 USD now costs $2.50 USD, before shipping or tariffs.

• Add a 10–15% import duty, and that same bar now costs us $2.80 or more, where it once cost $2.30.

This weakening dollar squeezes small importers like us twice—once at customs and again at the currency exchange desk.

Why We Still Import European Candy

Even with these extra costs, we’re committed to delivering real-deal candy from Europe. These aren’t mass-produced, flavorless substitutes—they’re nostalgic, high-quality, and worth every cent. From sour Swedish gummies to Belgian pralines, European candy is part of our brand’s identity and our customers’ cravings.

What We’re Doing to Stay Competitive

• Consolidating freight to minimize per-unit shipping cost

• Negotiating with suppliers for better rates or shared tariff coverage

• Offering bundles and promotions that reward bigger orders

• Tracking exchange rates daily to time our largest orders more favorably

We’re also keeping an eye on global trade news in hopes that tariff policies and currency conditions will swing back in our favor.

Final Thoughts: Thank You for Sticking with Us

Every time you choose to support our small candy business, you're helping us push through the rough patches caused by global trade policies, import taxes, and currency swings. You're also saying yes to better, more authentic candy from across the Atlantic.

Tariffs might be adding costs, but your loyalty keeps the sweet flowing.