U.S. Removes Reciprocal Tariffs on Cashews and Other Imported Nuts: What You Need to Know

On November 13, 2025, the United States implemented one of the most significant shifts in agricultural trade policy seen this year. Through an executive action modifying Executive Order 14257, the White House removed the “reciprocal tariff” from a wide range of imported agricultural goods, including cashew nuts, Brazil nuts, macadamias, pine nuts, chestnuts, coconuts, kola nuts, and areca nuts.

The ruling reclassifies 237 tariff lines into Annex II, the official list of products exempt from reciprocal tariffs. For nut buyers, processors, and global exporters, the implications are immediate: additional duties that previously ranged from 10% to as high as 50%, depending on origin, have now been eliminated.

This rollback comes after months of elevated import costs, disrupted supply chains, and political pressure related to inflation and U.S. domestic food shortages.

 

Why the U.S. Removed These Tariffs

According to the executive order and accompanying statements, the primary rationale was simple: the U.S. does not produce these goods itself, or cannot produce them in sufficient quantities to meet domestic demand.

Products that “cannot be grown, mined, or naturally produced in the United States”, such as most tropical nuts and fruits, were prioritized for exemption. Maintaining tariffs on these goods raised costs for American consumers and processors without offering any protection to domestic industries.

Industry feedback reinforces this logic. As the National Coffee Association and major food manufacturers noted, tariff pressure on non-domestic ingredients (e.g., cocoa) contributed to tightening supply chains and rising prices. Removing the duties was positioned as both an economic and a national-security necessity to stabilize supply and relieve inflationary pressure.

 

What Changes for Nut Imports

A broad range of nuts were explicitly added to Annex II and are now exempt from reciprocal tariffs. This includes:

• Cashew nuts (in shell and shelled)
• Brazil nuts (in shell and shelled)
• Macadamia nuts
• Pine nuts
• Chestnuts
• Coconuts
• Kola nuts
• Areca/betel nuts

With this update, these products now revert to their normal U.S. duty rate, which is zero or very low for most raw nuts.

Before November 13, many origins faced steep tariff rates under the reciprocal program. For example:

• Indian cashew kernels had at times faced duties approaching 50%.
• Vietnamese cashews were hit with 20%.

For importers/roasters, the removal of these duties can translate into substantial savings. A shipment valued at $100,000 previously taxed at 20% now enters at normal duty rates. Producing cost reductions of $20,000 per load.

 

Brazil: Still an Exception

Despite the rollback of reciprocal tariffs, Brazil continues to face a separate 40% punitive tariff imposed earlier in 2025 for political reasons unrelated to trade.

This means:

• Brazil nuts in-shell were explicitly exempted from the 40% punitive tariff, meaning they now face neither the punitive duty nor the reciprocal tariff.
• Other Brazilian-origin nuts, including cashews, still face the 40% punitive tariff because the November action removed only the reciprocal tariff, not the Brazil-specific penalty.

This distinction is critical. The November action only removed tariffs under the reciprocal tariff program; it did not affect country-specific punitive duties.

 

Global Trade Impact

The tariff removal immediately changes the competitive landscape for U.S.-bound nut shipments.

Vietnam

Vietnam, the world’s largest cashew processor, also stands to benefit. Earlier reciprocal tariffs had disrupted Vietnam’s ability to export cashews, coffee, and pepper to the U.S., and even risked slowing its imports of raw cashews from Africa. With tariffs lifted, Vietnam’s supply chains can normalize.

African Origins

African cashew producers, including Côte d’Ivoire, Nigeria, and Tanzania, may indirectly benefit from increased Vietnamese processing demand, now that the U.S. market is more accessible again.

Latin America & Others

Exporters across Latin America, Africa, and Southeast Asia have already begun accelerating shipments to the U.S., taking advantage of the restored duty-free access.

Overall, trade flows are expected to rebalance toward traditional origins, with competition intensifying now that tariff distortions have been removed.

 

What Importers Should Do Next

To properly claim the exemption, importers must:

• Use the correct HTS classification and apply subheading 9903.01.32 when filing entries for newly exempt goods.
• Verify HTS codes carefully, especially for partially exempt headings.
• Review recent entries:
  

  • Correct entries filed after November 13 to avoid paying unnecessary duties.
  • File Post Summary Corrections for unliquidated entries.
  • File protests for already liquidated entries within 180 days.

• Update contracts and pricing to reflect lower landed costs.
• Coordinate with customs brokers to ensure compliance.

For the U.S. nut industry, importers, processors, and manufacturers, this represents an immediate easing of input costs and an opportunity to rebuild supply chains after months of volatility.

 

Operational Realities: Tariff Removal Creates New Challenges for Existing Stock

While the removal of reciprocal tariffs is widely welcomed across the nut industry, it also introduces a new wave of operational and commercial complications for traders, roasters, and importers.

During the seven months the tariffs were in effect, all cashews entering the United States were taxed at elevated rates, in many cases 10%–50% depending on origin. These duties were paid upfront by importers and incorporated into the landed cost of goods now sitting in warehouses across the U.S.

Industry feedback highlights three immediate challenges:

1. Warehoused cashews remain tariff-burdened
All cashew inventory currently stored in the United States was imported before November 13 and therefore still carries the full tariff cost. Buyers, now aware that new shipments arrive duty-free, are reluctant to purchase existing stock at tariff-inclusive prices.

2. A wave of renegotiations and disputes
Traders expect “many discussions” with customers who will seek to reprice or cancel previously agreed purchases. Although the tariff was paid legally and correctly at the time of import, the sudden policy reversal creates tension in the value chain as buyers push for immediate price adjustments.

3. Significant administrative workload
Just as the introduction of the tariff created months of extra compliance and administrative burden, the removal is triggering the same again: importers must review entries, file corrections or protests, manage accounting adjustments, and reconcile which shipments qualify for refunds.

These operational realities mean that, despite the positive long-term impact of the tariff rollback, the short-term environment will involve uncertainty, negotiation pressure, and increased internal workload for many in the U.S. nut trade.

Conclusion

The November 2025 update marks a major reset in U.S. agricultural tariff policy. For the nut sector, and especially for cashews and Brazil nuts, the elimination of reciprocal tariffs restores a competitive landscape that had been heavily distorted since April.

However, important distinctions remain, notably Brazil’s separate 40% punitive tariff, meaning origin-specific considerations still matter.

As global trade flows begin to realign, importers and exporters will need to watch how markets respond, how suppliers reposition themselves, and how pricing stabilizes in the months ahead.

To stay informed on developments across the cashew sector, from local auction results to global trade trends, subscribe to Rotterdam Commodity Trading’s market updates. We share verified insights, analysis, and key developments shaping cashew supply, pricing, and exports.