German gingerbread is baked in summer to be ready for the holiday season. This year, U.S. tariffs could hit Christmas cookie profits.

Aachen

A chocolate factory near Aachen, Germany, is producing large quantities of Christmas treats despite the summer heat, with finished goods worth around 100 million euros ready for shipment. Approximately 25 percent of these products are exported, including significant shipments to the United States.

However, new US tariffs of 15 percent on EU products have created uncertainty for the factory's export business. Rising costs for ingredients such as butter, cacao, and nuts, along with increased energy expenses, are further squeezing margins. The company is now in discussions with US partners to determine how to handle the additional tariff costs, hoping the new measures will not have a lasting negative impact on exports.

Gingerbread in summer as tariffs loom

Gingerbread, cookies and other sweet Christmas treats, covered in white and dark chocolate. Hundreds of thousands of seasonal treats are being created every day at the Lombard's chocolate factories near the German town of Aachen. Finished goods worth some 100 million euros are ready to be shipped. And that's despite the fact that we're in the midst of summer, including recent heat waves covering much of Europe. After all these years, it's become normal for me that others are going to the pool while we're making all these wonderful Christmas cookies. I know it's crazy having this Christmas aroma around all day, but it's a nice smell, even when the temperature outside is over 30 degrees. Inside, the head of production has to make sure the temperature is lower and that the conveyor belts run smoothly. 25 percent of what's being made here is exported. Generally, half of all sweets produced in Germany is sold abroad. For Hermann Bühlbecker, that poses a problem this year. He has sold large amounts of German-made cookies into the U.S. Much of it is currently on some freight ship across the Atlantic. Then came U.S. President Trump's tariffs of 15 percent on all products from the EU. We've discussed certain prices with our clients in the U.S., and now all goods arriving there will be tariffed at 15 percent. That's an added cost, and it is unclear who has to pay for that. That's not answered in any of our contracts with our American partners. Now we have to discuss how to proceed, what to do. One thing is clear. There's not much room to cut costs for Lamberts. Quite the opposite. Butter, cacao and nuts have all become more expensive. Energy costs are up, too. We need natural gas for the ovens. We need energy to refrigerate our product. And then there's the raw materials, the ingredients. The cost for chocolate has exploded, so we're suffering under constantly rising costs. The group uses 25,000 tons of chocolate per year, and they hope that the new U.S. tariffs will not become a long-term factor ruining the export business.

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Jerusalem

Middle East Conflict

Israel calls up 60,000 reservists ahead of Gaza City operation

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Washington

Global Tariffs

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Brussels

Ukraine Invasion

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North Carolina

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Hong Kong Island

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East Coast of the United States

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Los Angeles

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Kyiv

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Paris

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Tel Aviv-Yafo

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Breakdown