📅 On April 2, 2025, U.S. President Donald Trump announced a 46% reciprocal tariff on selected goods imported from Vietnam. This high tariff rate has raised significant concerns among Vietnam’s key export sectors, including the cashew industry.
🌎 Importance of the U.S. Market to Vietnamese Cashews
The U.S. is Vietnam’s largest cashew importer, accounting for approximately 30% of total export revenue, equivalent to about $1.15 billion in 2024. Prior to this new tariff, Vietnamese cashews enjoyed a 0% import tax rate, offering significant competitive advantages over rivals such as India and Ivory Coast.
📉 Potential Impacts of the 46% Tariff
The imposed tariff will substantially increase cashew prices in the U.S., significantly reducing the competitiveness of Vietnamese products. The likelihood of losing orders and market share is very high, directly affecting the revenue and profitability of exporters, and also negatively impacting domestic cashew farmers.
⚙️ Responses from Government and Businesses
The Vietnamese government expressed regret over the U.S. decision, arguing that the 46% tariff does not align with the cooperative spirit between the two nations. Vietnam is currently seeking negotiation-based solutions to address this issue.
🔄 In the short term, businesses are considering market diversification strategies, focusing on emerging markets like the Middle East, EU, and Asia to mitigate the impact of U.S. tariffs.
📌 Conclusion
Although it’s unclear if cashews will directly fall under this new 46% tariff, the ripple effects of this tariff policy could be significant. Vietnamese businesses must thoroughly prepare, prioritizing product quality and market diversification to sustain stable and long-term growth.
📝 References:
- Vietnamnews.vn
- Bloomberg.com
- SGGP.org.vn
- Kaifarm.uk
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