Against the backdrop of continued pressure from the US on Vietnam's high import tariffs, trade flows of Vietnamese cashew nuts are accelerating towards China. Meanwhile, demand for Vietnamese cashew nuts in the European market has returned to the right track.
 
  Indian cashew enterprises were forced to stop production
 
  India is a large consumer of cashew nuts, its domestic consumption accounted for 31% of the world, but according to the “Times of India” reported that, due to the low price of cashew nut kernel superimposed on the weak domestic demand, Andhra Pradesh processing enterprises were forced to collectively shut down production for two weeks, resulting in a large number of workers into the plight of the unpaid. Recently India's average domestic cashew nut kernel price plummeted 70 rupees per kilogram, so that the local processors suffered a heavy blow. In sharp contrast, since February, India's cashew export prices continue to climb, which W320 specifications cashew nut kernel quotes hit a three-year high over the same period.
 
  Vietnam's cashew exports to the United States fell 2%, surged more than 4% to China
 
  Vietnamese processors are still mired in the uncertainty of the impact of the U.S. tariff policy. Currently, Vietnamese products are facing 46% import tariffs, but the recent Bloomberg report that “the US-Vietnam trade delegation is close to reaching an agreement to cut tariffs to 20-25%” has triggered market agitation. This policy volatility has severely impacted Vietnam's exports to the U.S. - Customs data show that Vietnam's cashew exports to the U.S. fell 10% year-on-year to 17,360 tons in May, while export value bucked the trend and rose 15% to $117.6 million. 2025 In the first five months of the year, the total amount of cashew exports to the U.S. plunged 22% to 59,750 tons, but the total export value was the same as the same period last year. tons, but the total export value was basically unchanged from the same period last year at US$406.9 million.
 
  China has replaced the United States as the largest export market for Vietnamese cashew nuts. in May, Vietnam's exports to China surged 44% year-on-year to 24,620 tons, and the value of exports soared 67% to $156.4 million. in the January-May 2025 period, Vietnam exported a total of 65,970 tons of cashew nuts worth $414.5 million to China, with the volume of exports up 22% year-on-year and the value up 41%.
 
  In the first five months of 2025, Vietnam's cashew exports totaled 276,760 tons, valued at $1.9 billion, although the total volume of exports fell by 5% year-on-year, the total value of exports grew by 19% against the trend. In addition to the two major markets of China and the US, the Netherlands, the UAE and Germany are also important export destinations, with exports to the UAE growing significantly, while exports to the Netherlands are facing challenges.
 
  European demand picks up
 
  According to Stratamarkets, European cashew spot market demand has picked up significantly, mainly because importers refused to purchase at high prices at the beginning of the year and now need to replenish stocks, while the stronger euro has also boosted trading activity. On the contrary, the U.S. market, under the pressure of high inflation, consumers tend to be cautious, resulting in a slowdown in demand. It is worth noting that the Vietnamese processors currently have sufficient stocks of raw materials, no need to purchase raw cashew nuts from Africa for the time being.

Translated with DeepL.com (free version)