Since the US consumes 18-20 per cent of world cashew production, this will impact the cashew prices
Indian cashew exporters not worried over the imposition of 25 per cent tariff by the Donald Trump administration, said exporters.
Pankaj N Sampat of Samson Traders said the say cashew shipments to the US markets are very small and the emerging situation will not have any major direct impact on the sector. However, the US tariff on cashews from all origins —ranging from 10 to 25 per cent —will mean that the consumers in that country will have to pay more for cashews (and all other imported products). This can have short term impact on cashew consumption in the US.
Since the US consumes 18-20 per cent of world cashew production, this will impact the cashew prices. In the long term, the market will adjust to these tariffs like it adjusts to changes in other factors affecting demand and prices, he added.
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Already, the market has adjusted to the world wide 10 per cent tariff levied since May. “Overall, there will not be any major impact of the US tariff on India’s cashew exports or on the global cashew sector,” Sampat said.
J Rajmohan Pillai, Managing Director of NutKing, said India currently holds a relatively small share in the US market for fresh or dried cashew nuts (around 0.9 per cent) and preserved cashews (6 per cent). This means that while the tariffs are generally negative, the relative disadvantages against Vietnam could close all exports to the USA.
African competitors such as Côte d’Ivoire and Benin, the major raw cashew nut producers, currently enjoy relatively low 10 per cent tariffs on their US exports. They are also developing their domestic processing capabilities, posing a long-term competitive threat to Indian cashews.
“We have no idea what the total tax will be as Trump is also talking of a levy but not specified on it. Only after that any prediction is possible,” Pillai said.
Published on July 31, 2025