United States Remains Vietnam’s Largest Pepper Import Market Despite Volume Decline
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The United States continued to be Vietnam’s largest pepper export market in the first quarter of 2025, importing 10,278 tons, equivalent to over 21% of Vietnam’s total export volume. However, this represents a 32.6% drop year-on-year.
Following the U.S. were India, Germany, the United Arab Emirates (UAE), and China — the latter showing an impressive 87.8% month-on-month increase, although its total imports remain below last year’s level.
Export Volume Falls, but Revenue Soars Thanks to Higher Prices
According to preliminary data from the Vietnam Pepper and Spice Association (VPSA), Vietnam exported 20,244 tonsof pepper in March 2025, earning USD 141.6 million in revenue.
Compared with February, export volume increased 41.3%, while export value surged 45.6%. However, year-on-year, volume fell 21.2%, whereas value rose 27.9% — reflecting a strong increase in export prices.
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Average export price (March 2025):
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Black pepper: USD 6,790/ton (up USD 122 from February)
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White pepper: USD 8,802/ton (up USD 268 from February)
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For Q1 2025, Vietnam exported 47,660 tons of pepper worth USD 326.6 million, representing a 16.1% decrease in volume but a 38.6% increase in value compared to Q1 2024.
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Average Q1 prices:
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Black pepper: USD 6,711/ton — nearly double the level a year ago
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White pepper: USD 8,617/ton
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Export prices have continued their upward momentum in early 2025, offsetting reduced output and ensuring positive export earnings for the industry.
Pepper Imports into Vietnam Also Surge Sharply
Vietnam’s imports of pepper also increased notably in March.
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Import volume: 4,940 tons (up 80% from February)
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Import value: USD 28.9 million
For the entire first quarter, Vietnam imported 9,686 tons worth USD 55.7 million, marking a 21.3% increase in quantityand a staggering 88.8% increase in value.
Brazil, Indonesia, and Cambodia remained the top three suppliers.
U.S. Tariff Policy Sparks Concern Among Pepper Exporters
Despite higher global pepper prices, Vietnam’s pepper exporters face significant uncertainty due to new U.S. trade policies.
On April 2, 2025, U.S. President Donald Trump announced a minimum import tariff of 10% on all goods, and a 46% retaliatory tariff specifically on products from Vietnam.
This sudden move threatens the profitability of many Vietnamese exporters that had signed contracts prior to the policy shift.
“The United States accounts for 77% of Vietnam’s total pepper exports, generating over USD 400 millionin 2024,” said Mr. Lê Việt Anh, Chief of Office at VPSA.
“If the 10% tariff is enforced, many shipments scheduled for delivery between August and September 2025could suffer major losses, as these contracts were signed without factoring in the new tax.”
Exporters Seek Negotiations and Risk Mitigation
Several companies are reportedly renegotiating terms with U.S. partners to share the tax burden. Meanwhile, the exact scope of the 46% retaliatory tariff — and whether it will apply to pepper — remains uncertain.
Mr. Lê Việt Anh noted that exporters are closely monitoring diplomatic discussions between the Vietnamese and U.S. governments, hoping pepper products will be exempted from the additional tariff.
VPSA has also recommended its members:
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Review and adjust export contracts to reflect possible tariff changes;
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Delay new shipments until policy clarity improves;
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Diversify markets to reduce dependency on the U.S., exploring opportunities in India, Europe, and the Middle East.
Outlook: Strong Prices, Uncertain Policy Environment
While high export prices continue to buoy the industry, policy risks in the U.S. market are becoming a major factor shaping Vietnam’s pepper trade outlook for the rest of 2025.
The next few months will be crucial as exporters, industry associations, and government agencies work together to protect Vietnam’s dominant position in the global pepper market, which currently supplies over one-third of global demand.