US Tariff Hike Leaves Indian Cashew Industry Unfazed

05-Aug-2025 04:10 PM

Mangalore. The announcement of imposing 25 percent tariff on cashew and other Indian products in the US is likely to have a minor direct impact on Indian cashew exports.

According to a leading trade analyst, India exports limited amount of cashew to the US and hence the Indian cashew sector will remain largely unaffected by the new tariff. But if a high rate tariff is imposed on imports from all the supplier countries, the price of processed cashew in the US market will increase.

US alone has a share of 18-20 percent in the total global consumption of cashew, hence if the demand there weakens, the international market price may be affected.

However, with the passage of time, the situation may become normal as the market may be able to adjust to the new situation.

In May, the US had imposed a tariff of 10 percent and the market has adjusted to it. The new tariff will also gradually become acceptable and hence the business will not be affected much.

According to the analyst, India's share in the US cashew market is very low. The share of fresh or dried cashews is merely 0.9 percent and that of preserved cashew products is 6 percent.

Cashews are imported to the US mainly from Vietnam, Indonesia, Brazil and African countries. According to critics, the 25 percent tariff imposed by the US (which may increase further) is not conducive to business, but India's limited share in the US market will not cause any immediate harm.

It will be necessary to see how much the competitive gap with major supplier countries like Vietnam fluctuates. But African countries like Cote d'Ivoire and Benin are likely to benefit greatly because, firstly, only 10 percent import duty will be levied on their cashews in the US and secondly,

new cashew processing units are being established rapidly in these countries. This may cause great difficulty for India in importing raw cashews from there.