Vietnam’s Spice Trade Under Pressure: U.S. Tariffs, Market Moves, and What Comes Next

Flat lay photo of premium spices used in global cooking and spice trade. The image features a wooden bowl filled with black peppercorns, aromatic cinnamon sticks, star anise pods, and fresh ginger root, all arranged neatly on a neutral beige background. Perfect representation of Vietnamese spice exports and natural ingredients affected by recent trade tariffs, highlighting the diversity of essential spices such as pepper, cassia cinnamon, star anise, and ginger.
14Apr

Vietnam’s Spice Trade Under Pressure: U.S. Tariffs, Market Moves, and What Comes Next

The Vietnamese spice market, especially pepper, cassia cinnamon, star anise, and ginger, is facing a critical moment. After the U.S. announced a steep 46% tariff on Vietnamese imports earlier this month, markets reacted fast. Though this specific surcharge is now paused for 90 days due to ongoing negotiations, a baseline 10% tariff remains in place. Exporters are using this window to push shipments forward, but uncertainty looms.

U.S. Tariffs: The Trigger

On April 2, the U.S. imposed a 46% tariff on Vietnamese products, including key spices. The decision sent immediate shockwaves through the pepper market, Vietnam’s most exported spice. The United States accounts for around 31% of Vietnam’s total pepper exports — that’s over 72,000 tons in 2024 alone.

While the 46% tariff is currently paused, the 10% baseline tariff is still active. U.S. buyers are moving quickly to secure contracts during this period. If they try to front-load purchases before the 90 days are over, it could tighten supply locally and push prices up in the short term.

Export Figures and Market Shifts

Vietnam exported around 47,660 tons of pepper in the first quarter of 2025, earning $326.6 million. This is a 16.1% decrease in volume, but thanks to tight supply and price increases, export value rose 38.6% year-on-year.

Interesting shift: China — once a major buyer — has drastically reduced its imports of Vietnamese pepper. In 2023, China imported 57,723 tons, but in 2024, it dropped to just 10,346 tons. Even with this decline, pepper prices have held strong due to limited global supply.

Cassia & Star Anise: Stable, But Watchful

Unlike pepper, U.S. buyers don’t have many alternatives for cassia cinnamon and star anise. Vietnam, China, and Indonesia dominate the market. But Chinese exports face over 100% tariffs, and Indonesia’s cassia carries a 32% tariff, which keeps Vietnam competitive — even with current trade tensions.

Cassia prices have dipped slightly, influenced by the new harvest and lower demand during Ramadan in the Middle East (a key market). Star anise prices, after a previous spike, have now stabilized, holding firm due to limited supply.

Ginger: Upward Pressure

Ginger prices are climbing as the harvest season comes to an end and global demand continues to grow. Tight supply conditions mean upward price pressure is expected to continue in the short term.

What Happens Next?

Both Vietnam and U.S. industry groups are pushing hard to have spices removed from the tariff list. The Vietnam Pepper and Spice Association is working closely with the American Spice Trade Association (ASTA), making the case that spices are not produced in significant quantities in the U.S. and should not be penalized.

For now, exporters are working to close deals within the 90-day pause. But the pressure is real. If the 46% tariff is reinstated after this window, it could cause major disruptions across the spice supply chain.

Bottom line

Short supply, limited alternatives, and active negotiations are shaping a volatile landscape. Buyers and sellers alike should stay sharp in the weeks ahead.

Sources

  1. Reuters. (2025, April 10). U.S., Vietnam agree to launch trade deal talks, tariffs paused. Retrieved from https://www.reuters.com/world/asia-pacific/us-vietnam-agree-launch-trade-deal-talks-tariffs-paused-2025-04-10/

  2. Tuoi Tre News. (2025, April 11). Vietnam seeks US tariff exemptions on key agricultural exports. Retrieved from https://tuoitrenews.vn/vietnam-seeks-us-tariff-exemptions-on-key-agricultural-exports-103250411170533426.htm

  3. VietNamNet. (2025, April 12). US buyers rush for Vietnam’s pepper as tariff delay boosts demand. Retrieved from https://vietnamnet.vn/en/us-buyers-rush-for-vietnam-s-pepper-as-tariff-delay-boosts-demand-2390369.html

  4. Vietnam News. (2025, April 12). Pepper exporters responding to new US tariff policy. Retrieved from https://vietnamnews.vn/economy/1695487/pepper-exporters-responding-to-new-us-tariff-policy.html

  5. Vietnam Agriculture News. (2025, April 13). Pepper exports to China decrease by more than 84%. Retrieved from https://vietnamagriculture.nongnghiep.vn/pepper-exports-to-china-decrease-by-more-than-84-d403632.html

  6. LinkedIn (Prosijsc). (2025, April 13). Vietnam cassia cinnamon & star anise market update. Retrieved from https://vn.linkedin.com/company/prosijsc

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