Pepper exporters responding to new US tariff policy

Pepper exporters responding to new US tariff policy

Việt Nam exported 20,244 tonnes of various types of pepper in March, earning US$141.6 million. The figures represented increases of 41.3 per cent in volume, and 45.6 per cent in value month-on-month, and a decrease of 21.2 per cent in volume and a rise of 27.9 per cent in value year-on-year.

Việt Nam exports 20,244 tonnes of various types of pepper in March. — VNA/VNS Photo

High export prices helped the pepper export value remain positive in the first quarter of 2025, despite a decrease in export volume. However, with the US announcing base and reciprocal tariffs on imported goods, exporters are concerned about facing significant losses in the coming time.

According to preliminary statistics from the Việt Nam Pepper and Spice Association (VPSA), Việt Nam exported 20,244 tonnes of various types of pepper in March, earning US$141.6 million. The figures represented increases of 41.3 per cent in volume, and 45.6 per cent in value month-on-month, and a decrease of 21.2 per cent in volume and a rise of 27.9 per cent in value year-on-year. The average export price of black pepper in March was $6,790 a tonne, and that of white pepper was $8,802 per tonne, up $122 and $268 from the previous month, respectively.

In the first quarter of this year, Việt Nam shipped a total of 47,660 tonnes of pepper abroad, pocketing $326.6 million, down 16.1 per cent in volume, but up 38.6 per cent in value compared to the same period last year. In the period, the average export price of black pepper was $6,711 a tonne, and white pepper $8,617 a tonne, up 94.9 per cent and 73.9 per cent year-on-year.

The US remained the largest export market for Vietnamese pepper; however, the volume in Q1 decreased by 32.6 per cent year-on-year, reaching 10,278 tonnes. It was followed by India, with an export volume of 3,370 tonnes, a decrease of 11.2 per cent; Germany, 3,358 tonnes, down 9.3 per cent; and the United Arab Emirates (UAE), 2,757 tonnes, up 15.2 per cent.

In the contrary, in the first three months, Việt Nam imported 9,686 tonnes of pepper, with a total import value of $55.7 million, up 21.3 per cent in volume and 88.8 per cent in value year-on-year. Brazil was the largest supplier of pepper to Vietnam, providing 4,363 tonnes, which is equivalent to the same period last year. It was followed by Indonesia with 3,707 tonnes, an increase of 385.2 per cent, and Cambodia 735 tonnes, a decrease of 64.7 per cent.

Despite promising export growth, the announcement by US President Donald Trump to apply a 10 per cent base tariff on all imported goods and a 46 per cent reciprocal duty on goods imported from Việt Nam has raised concerns among pepper exporters as pepper is one of Việt Nam's key agricultural products with a strong market share in the US.

Lê Việt Anh, Chief of the Office of the VPSA, stated that Việt Nam is the largest supplier of pepper to the US, accounting for 77 per cent of the country’s total pepper imports. In 2024, pepper exports to the US reached 72,311 tonnes, marking a record increase of 33.2 per cent; and the export value reached $409 million, accounting for 31 per cent of the total pepper export value to all markets.

According to Anh, the 10 per cent import tariff on all goods entering the US has caused significant concern among Vietnamese pepper exporters. In the first months of 2025, Vietnamese businesses signed many long-term contracts with US importers, some of which have delivery dates as far as August and September this year. These contracts, signed before Trump’s announcement on April 2, did not include the 10 per cent duty. Therefore, the risk of losses from orders signed before April is considerable.

Given the current situation, some businesses are considering renegotiations with US importers so that both parties share the burden of the 10 per cent tariff on all imported goods. As for the reciprocal duty on goods imported from Việt Nam into the US, the details remain unclear.

The pepper industry is beginning to explore the specific tariff rates on Vietnamese pepper in order to devise further response strategies. Businesses are still hopeful that the negotiations between the two governments will yield a positive outcome, and that pepper will only be subject to the minimum 10 per cent import tariff without additional reciprocal duties. 

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