How will the current tariffs from the USA affect cashew trading in the next few months?

30 Apr How will the current tariffs from the USA affect cashew trading in the next few months?

The recent implementation of U.S. tariffs is poised to significantly impact global cashew trading in the upcoming months. Effective April 5, 2025, a universal 10% tariff was imposed on all imports into the United States, with additional country-specific tariffs commencing on April 9. Notably, Vietnam, the world’s leading cashew processor, faces a substantial 46% tariff, while Nigeria’s cashew exports are subject to a comparatively lower 14% tariff.

These tariff adjustments are likely to reshape the cashew supply chain. Vietnamese exporters may experience reduced competitiveness in the U.S. market, potentially leading to decreased export volumes. Conversely, African nations like Nigeria could capitalise on this shift, as their cashew products become more price-competitive, offering an opportunity to increase their market share in the United States.​

However, this transition is not without challenges. African cashew producers must rapidly scale up processing capabilities, ensure quality standards, and navigate logistical hurdles to meet the potential surge in demand. Moreover, the broader trade environment remains volatile, with ongoing retaliatory measures and policy reversals contributing to uncertainty.

In summary, while the new U.S. tariffs present challenges for established exporters like Vietnam, they simultaneously offer growth opportunities for emerging players in the cashew industry, provided they can adapt swiftly to the evolving trade landscape.