Trump Tariffs: Indian Cashew Set to Gain in US as Vietnam Faces Higher Duty

Exporters Likely to Experience Stiff Competition from Africa in the Long Run 

The recent 26% tariff imposed by former US President Donald Trump is expected to boost the competitiveness of Indian cashews in the United States market, giving a significant price advantage over Vietnam. However, exporters warn that the long-term outlook may present increased competition from African producers, who face lower duties. 

Bola Rahul Kamath, President of the All India Cashew Association, explained that the US has imposed a 46% tariff on Vietnamese cashews, while Indian cashews face a lower 26% duty. This means that Indian cashew exports will be 20% cheaper compared to Vietnam's in the US market, making them a more attractive option for buyers. 

Currently, Vietnam dominates the US cashew market, supplying nearly 90% of the total demand. The US consumes around 1.5 lakh tonnes of cashews annually, with Vietnam contributing 1.3 lakh tonnes, while India's share remains relatively small at around 7,000-8,000 tonnes. 

Despite this immediate advantage for Indian exporters, industry experts caution that African countries—notably Ivory Coast, Tanzania, and Ghana—are ramping up their processing capabilities. Traditionally, Africa has been a key supplier of raw cashew nuts (RCN) to Vietnam and India, but with rising investments in local processing, African nations could become major competitors in processed cashew exports to the US. 

“Africa has been strengthening its cashew processing sector, and in the coming years, they could pose strong competition to both India and Vietnam in the global cashew market,” said Kamath. 

The US is one of the largest importers of cashew nuts, and the current tariff structure provides a temporary boost for Indian exporters. However, industry stakeholders emphasize the need for strategic investments in value-added processing, branding, and marketing to sustain and expand India's footprint in the US market in the long run.

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