HCM City (VNA) - 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 Vietnam Pepper and Spice Association (VPSA), Vietnam exported 20,244 tonnes of various types of pepper in March, earning 141.6 million USD. The figures represented increases of 41.3% in volume, and 45.6% in value month-on-month, and a decrease of 21.2% in volume and a rise of 27.9% in value year-on-year. The average export price of black pepper in March was 6,790 USD a tonne, and that of white pepper was 8,802 USD per tonne, up 122 USD and 268 USD from the previous month, respectively.
In the first quarter of this year, Vietnam shipped a total of 47,660 tonnes of pepper abroad, pocketing 326.6 million USD, down 16.1% in volume, but up 38.6% in value compared to the same period last year. In the period, the average export price of black pepper was 6,711 USD a tonne, and white pepper 8,617 USD a tonne, up 94.9% and 73.9% year-on-year.
The US remained the largest export market for Vietnamese pepper; however, the volume in Q1 decreased by 32.6% 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%; Germany, 3,358 tonnes, down 9.3%; and the United Arab Emirates (UAE), 2,757 tonnes, up 15.2%.
In the contrary, in the first three months, Vietnam imported 9,686 tonnes of pepper, with a total import value of 55.7 million USD, up 21.3% in volume and 88.8% 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%, and Cambodia 735 tonnes, a decrease of 64.7%.
Despite promising export growth, the announcement by US President Donald Trump to apply a 10% base tariff on all imported goods and a 46% reciprocal duty on goods imported from Vietnam has raised concerns among pepper exporters as pepper is one of Vietnam's key agricultural products with a strong market share in the US.
Le Viet Anh, Chief of the Office of the VPSA, stated that Vietnam is the largest supplier of pepper to the US, accounting for 77% 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%; and the export value reached 409 million USD, accounting for 31% of the total pepper export value to all markets.
According to Anh, the 10% 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% 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% tariff on all imported goods. As for the reciprocal duty on goods imported from Vietnam 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% import tariff without additional reciprocal duties./.
VNA
