By Canan Sevgili and Paolo Laudani

(Reuters) -Swiss chocolate maker Lindt & Spruengli said it is still working out how to deal with the escalating trade war launched by U.S. President Donald Trump and has temporarily increased stocks in Canada to cushion the impact of tariffs.

The company said in March it would supply chocolate made in Europe to Canada to avoid tariffs imposed to counter higher U.S. customs duties.

But since March, there have been several changes to tariffs placed on imports and exports from the United States, prompting many companies to adopt a wait-and-see approach to the changing trading conditions.

"We have not adjusted any sourcing strategy as the situation develops so fast," a Lindt spokesperson told Reuters in an email on Tuesday. "As soon as we have a clearer and more stable overview of the situation, we decide if and how to adjust our sourcing strategy."

The spokesperson said that shifting sourcing of products sold in Canada to Europe was "one option that is being discussed", but the company has not yet decided how to proceed.

"This was one of the options that was considered and can be implemented if necessary," the spokesperson said.

Lindt said it had temporarily increased stock levels in Canada as a safeguard against potential supply disruptions in light of the imposed counter-tariffs on products imported from the United States.

In March, Lindt said that 50% of its Canadian chocolate supply originated from the United States, but those volumes could be entirely shifted to Europe.

Lindt produces 95% of its U.S. market chocolates in its five domestic factories, which also serve Canada.

This month, Swiss chocolate maker Barry Callebaut's chief executive said it was planning to increase its U.S.-based production to fend off effects of the "disruptive environment" in North America.

(Reporting by Canan Sevgili and Paolo Laudani. Additional reporting by Richa Naidu and Maytaal Angel. Editing by Milla Nissi.)