Trump’s Food Tariff Cut Likely To Trim Import Costs For Hershey, Dr. Pepper, Vita Coco, Analyst Says

• On Friday, the U.S. announced cuts to tariffs on more than 200 food products, including cocoa and coffee, as well as staples such as beef, bananas, and orange juice.
• Piper Sandler said the move reduces Hershey’s cocoa-related tariff burden, previously estimated at about $50 million per quarter, and effectively nullifies Vita Coco’s projected 2026 tariff bill of roughly $55 million.
• Stocktwits sentiment for HSY and KDP remained ‘bearish,’ while that for COCO shifted to ‘bullish.’

President Donald Trump’s exemption of coffee and cocoa from higher tariff rates, effective November 13, is positive for companies such as Vita Coco, Hershey, and Keurig Dr Pepper, Piper Sandler said in a note released Sunday.

"The prices of coffee were a little bit high, now they'll be on the low side in a very short period," Trump told reporters aboard Air Force One on Friday. His comments came as the U.S. rolled back tariffs on more than 200 food products, including staples such as beef, bananas, and orange juice.

Americans are feeling the pinch of rising grocery costs under the Trump administration. Democrats recently notched a series of wins in state and local races in Virginia, New Jersey, and New York, contests where voter anxiety over affordability, including soaring food costs, was a key issue.

Friday’s cuts were in addition to the previously announced lower tariffs on most imports from Argentina, Guatemala, and El Salvador, and  Ecuador.

According to The Fly, Piper Sandler analysts stated that the moves reduce Hershey’s cocoa-related tariff burden, previously estimated at approximately $50 million per quarter, and effectively nullify Vita Coco’s projected 2026 tariff bill of roughly $55 million.

Candy maker Hershey has an extensive portfolio of chocolate and related products, including milk and dark chocolate bars, cocoa powders, chocolate syrups, Kisses, Kit Kat, Reese’s Cups, and other chocolate-based candies. Vita Coca sells a popular chocolate-flavored coconut drink, while Keurig Dr Pepper sells K-Cup coffee pods and Swiss Miss hot cocoa pods.

On Stocktwits, the retail sentiment for Hershey and Keurig Dr Pepper remained ‘bearish’ as of late Sunday, unchanged from the previous day. The sentiment for Vita Coca shifted to ‘bullish’ from ‘neutral.’

HSY and COCO have gained 5.8% and 19%, respectively, year-to-date, while KDP has declined 15.5%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: GameStop Stock Draws Retail Buzz After Third Weekly Drop: Retail Speculates Short Squeeze But Holds A Neutral View

Share

·

Add us on