Cashew Exports Unaffected by US Tariffs

01-Aug-2025 10:59 AM

Mangalore. India's cashew exporters are not too worried about the US tariffs and say that the new tariffs will not pose any serious threat to Indian cashew exports there.

It is noteworthy that the US has announced an import duty of 25 per cent on Indian products from August 1, 2025. A leading trading firm believes that the US is a small market in terms of exports from Indian cashew and the new emerging situation is unlikely to have any deep direct adverse effect on the Indian cashew sector.

But its imports from all other supplier countries in the US and especially Vietnam, Indonesia and Brazil may be affected because it has been decided to impose high rates of duty on goods imported from these countries. This will naturally increase the price of cashew in the US and cause problems to consumers. Its consumption may decrease there.

It is noteworthy that the US alone accounts for 18-20 per cent of the total global imports of the current year, so if imports become expensive there, there may be some impact on the global market price of cashew.

But in the long run, the market may be able to adjust to this situation, which may lead to stability in the demand and price of cashew.

The 10 percent import duty in the US has been applicable on the products of all exporting countries since May and the market has adjusted to it. According to trade analysts, overall the US tariff will not have any significant impact on the Indian cashew sector and the global cashew sector will also not be affected much.

The share of Indian cashew exports in the US market is limited. The share of fresh and dry cashews there is only 0.9 percent and the share of preserved cashews is about 6 percent. Vietnam, which is its major supplier country, may face difficulty in continuing exports there.

On the other hand, African countries like Cote d'Ivoire and Benin may get a good opportunity to increase cashew exports to the US.