Cashew Market Update: High Prices, Trade Shifts, and What U.S. Buyers Need to Know

Cashew prices are hitting new highs, tariffs are adding friction to the supply chain, and U.S. importers are paying the price. While global demand is climbing, U.S. buyers are getting squeezed by policy, competition, and rising costs.

India: Processing Disruptions Despite Rising Export Prices

In India, local demand for cashews has dropped significantly. In the state of Andhra Pradesh, more than 300 cashew processing units recently shut down for two weeks because of low domestic prices. Workers were left without pay, and processors faced serious losses. While the domestic market is struggling, the export side tells a different story. Since February, prices for export-grade kernels like W320 have steadily climbed. These are now at their highest level in three years, driven by strong global demand.

U.S. Tariffs on Vietnam: A Costly Barrier

The U.S. currently imposes a steep 46% tariff on cashew imports from Vietnam, the world’s top cashew processor. This has pushed many U.S. buyers to the sidelines. Some delayed shipments, while others stopped placing orders altogether. There were talks earlier this year about lowering the tariff to 20–25%, but no firm resolution has been reached yet. Even at 10%, traders say the tariff makes it hard to stay competitive. For now, Vietnamese cashews remain an expensive option for U.S. buyers.

China Takes the Lead as Vietnam’s Top Buyer

With the U.S. market cooling, Vietnamese exporters have turned to China. In May alone, Vietnam shipped over 24,000 metric tons of cashews to China, 44% more than the same month last year. China has now surpassed the U.S. as Vietnam’s top cashew customer. As a result, much of the supply that might have gone to the U.S. is now headed east.

Europe Reenters the Market

After months of holding back due to high prices, European buyers are returning. Many had run down their inventories and are now buying again despite elevated costs. The stronger euro has also made it easier for them to buy cashews priced in U.S. dollars. Increased demand from Europe adds more pressure to already tight global supplies.

U.S. Market: High Costs, Uncertain Demand

For U.S. companies, this environment presents several challenges. Import costs are increasing, due to both tariffs and global price hikes. Consumer demand for nuts has also softened, likely due to inflation and higher retail prices. This puts importers and processors in a difficult position: either absorb the cost, raise prices, or source from new origins.

Some U.S. buyers are exploring suppliers in Africa or India, where tariffs are lower or nonexistent. But switching isn’t always easy. Quality, logistics, and availability vary, and new relationships take time to build.

Outlook: What to Watch

Keep an eye on the U.S.-Vietnam trade talks. If tariffs are reduced, Vietnamese cashews could become more affordable again. Also, monitor upcoming harvests in Africa and Asia. An increase in supply might help ease prices later in the year. But for now, expect high prices to stick around and competition to remain strong.

If you’re in the U.S. cashew business, whether importing, roasting, or distributing, it’s a good time to review your sourcing strategy and be ready to adapt. The market is tight, and flexibility will be key.