- The US Tariff Scenario:
In April 2025, former President Donald Trump’s administration imposed a steep 46% import tariff on Vietnamese cashew kernel exports to the United States. Though there were brief discussions about lowering this rate to 20–25%, and even a temporary suspension reported by Reuters, the high tariff remains in effect as of June 2025, creating widespread uncertainty in the global cashew trade.
US Motivation:
- These are branded as “reciprocal tariffs” aimed at protecting domestic industries.
- However, the US has limited cashew production and minimal large-scale processing.
- This points to the tariffs being part of broader geopolitical or trade negotiations.
Impact on US Buyers:
- Vietnamese cashews, which were once the top import, have become significantly more expensive.
- Importers in the US are either delaying or canceling orders, and many are now exploring alternate sourcing options.