Agriculture

What's the Tariff on Nuts (Cashews)?

Cashews processed in Vietnam and India.

💡
The 34% tariff on Nuts (Cashews) is paid by American importers, not foreign manufacturers. Your 1 lb cashews now costs $14.73 instead of $10.99 — that's $3.74 more, or 34% of the sticker price going directly to tariff taxes.

Current Tariff Rate

34%

Pre-2025 Rate

0%

Rate Increase

+34pp

Price Impact

+34%

+$3.74

Real-World Price Impact

Before Tariffs

$10.99

1 lb cashews

After Tariffs

$14.73

1 lb cashews

That's $3.74 more per unit — a 34% price increase paid by the American buyer.

Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.

The Story Behind This Tariff

Cashews have one of the most geographically convoluted supply chains in global agriculture. Raw cashew nuts grow primarily in West Africa (Ivory Coast, Tanzania, Guinea-Bissau) and are shipped to Vietnam and India for hand-processing — a labor-intensive operation involving toxic cashew nut shell liquid that makes automation difficult. Vietnam processes 65% of the world's cashews, meaning the 34% IEEPA tariff hits the processing country, not the growing country. This creates a perverse incentive: African nations that could develop processing capacity see no tariff benefit, while Vietnamese workers who perform the dangerous shelling work bear the economic brunt. The US is the world's largest cashew consumer, importing over billion annually. There is zero domestic production — cashew trees require tropical climates. The tariff essentially taxes a nut that cannot be grown or processed in America, with no possibility of domestic substitution.

📦 Supply Chain

Primary Origin

Vietnam

Made in USA

0%

Import Volume

.2B

Alternatives

India (processing), direct African sourcing (emerging)

📅 Tariff Timeline

2007

Vietnam WTO accession sets cashew tariff bindings

0%

2018

Section 301 excludes cashews from initial China lists

0%

2025-Feb

IEEPA tariff captures Vietnam-processed cashews

34%

2025-Mar

Snack industry warns of reformulation to cheaper nuts

34%

👥 Consumer Impact

Households Affected

55M

Annual Cost Per Household

4

💡 Did You Know?

  • Cashews grow inside a toxic shell containing caustic liquid — processing is so dangerous that workers frequently suffer chemical burns
  • West Africa grows most raw cashews but Vietnam and India process 90% of them, creating a colonial-era-style raw material export dynamic
  • There is zero US cashew production — the tree requires equatorial growing conditions impossible in any US state

Tariff Details

HTS Code
0801.31
Current Rate
34%
Pre-2025 Rate
0%
Tariff Type
IEEPA

Legal Authority

IEEPA Executive Order (April 2, 2025)

Effective: April 2, 2025

"Liberation Day" — broad tariffs under the International Emergency Economic Powers Act

The tariff on Nuts (Cashews) is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.

Who Actually Pays This Tariff?

Despite claims that tariffs are paid by foreign countries, the 34% tariff on Nuts (Cashews) is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.

  • ✓ The foreign seller receives the same price as before
  • ✓ The US importer pays 34% of the customs value to CBP
  • ✓ The retailer marks up the higher landed cost
  • ✓ You pay more at the register: $10.99 → $14.73

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