Africa is expected to gain only limited benefits from the United States’ decision to remove import tariffs on cashew nuts, despite the move easing concerns across the global cashew industry, according to market expert Jim Fitzpatrick.
According to Ecofin Agency, the decision, announced on November 14 by U.S. President Donald Trump, has reassured international market players, but Mr. Fitzpatrick said African producers are unlikely to see major gains.
He noted that African countries accounted for just 7% of cashew kernels imported by the United States in 2024, compared with nearly 89% supplied by Vietnam, which is expected to benefit the most by further strengthening its dominant position in the U.S. market.
While African processors are expected to gain overall from the return of U.S. buyers to the international cashew market, their potential for growth in the United States remains constrained.
Mr. Fitzpatrick explained that U.S. importers are far more price-sensitive than European buyers, who tend to place greater emphasis on sustainability and quality when making sourcing decisions. Vietnam, he said, is able to offer lower prices, giving it a strong competitive edge.
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Because of this pricing dynamic, many African exporters continue to focus on the European market, which offers higher prices and lower shipping costs. In 2024, African suppliers met about 21% of the European Union’s cashew demand.
“The removal of U.S. tariffs on cashew will have a limited impact on Africa, while it will have a much more significant effect in Vietnam. What we may see is that, as American buyers gradually return to the market, they may look to diversify their sources of supply. The challenge, therefore, would be for African processors to increase their market share in the U.S. However, this is difficult to achieve, as it is very hard to compete with Vietnam on price. Moreover, over the past three or four years, American buyers’ interest in African cashew kernels has actually declined,” he said.
Looking beyond tariffs, Mr. Fitzpatrick added that the cancellation or withdrawal of USAID development projects has also had a negative impact on the cashew sector in West Africa, with many previously active programs having been stopped.
“This means that farmers, and to some extent processors, no longer receive the marketing support in the U.S. market that they once did. It is also worth noting that, although import tariffs have been removed, the situation remains quite volatile,” he added.
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Image Credit: Ayoub’s Dried Fruits & Nuts
