Positive export, pepper businesses still worry about coping with US tax - Lang Son Newspaper and Radio and Television

With the US announcing minimum tax rates and corresponding taxes on imported goods, pepper exporting enterprises are worried that they will suffer great losses in the coming time.

Pepper prices in Dak Lak province continue to increase (Photo: Hoai Thu/VNA)

High export prices help pepper export turnover continue to be positive in the first quarter of 2025 despite a decrease in export volume.

However, with the US announcing minimum tax rates and corresponding taxes on imported goods, pepper exporting enterprises are worried that they will suffer great losses in the coming time.

Preliminary statistics from the Vietnam Pepper and Spice Association (VPSA) show that in March, Vietnam exported 20,244 tons of pepper of all kinds; of which black pepper reached 17,493 tons and white pepper reached 2,751 tons. Total export turnover reached 141.6 million USD.

Compared to February, export volume increased by 41.3%, turnover increased by 45.6% and compared to the same period last year, export decreased by 21.2%, however turnover increased by 27.9%.

Farmers in Dak R'lap district ( Dak Nong ) dry pepper. (Photo: Ngoc Minh/VNA)

The average export price of black pepper in March reached 6,790 USD/ton, white pepper reached 8,802 USD/ton, an increase of 122 USD for black pepper and 268 USD for white pepper compared to the previous month.

By the end of the first quarter of 2025, Vietnam had exported 47,660 tons of pepper of all kinds, of which black pepper reached 39,853 tons and white pepper reached 7,807 tons. Total export turnover reached 326.6 million USD.

Compared to the same period last year, the export volume decreased by 16.1%, but the export turnover increased by 38.6%. The average export price of black pepper in the first quarter reached 6,711 USD/ton, up 94.9% and white pepper reached 8,617 USD/ton, up 73.9% compared to the same period in 2024.

In terms of market, the United States is still the largest export destination for Vietnamese pepper, however, import volume in the first quarter of 2025 decreased by 32.6% over the same period, reaching 10,278 tons.

Next is India, with export output reaching 3,370 tons, down 11.2%; Germany 3,358 tons, down 9.3%; UAE 2,757 tons, up 15.2%.

Notably, exports to China increased by 87.8% to 2,034 tons, but compared to the same period in 2023, the import volume was still 92.2% lower.

Vietnam's leading white pepper import markets are China, Germany, the United States, India and the Netherlands.

Dried peppercorns. (Photo: Ngoc Minh/VNA)

On the other hand, in March 2025, Vietnam imported 4,940 tons; of which, black pepper reached 4,072 tons, white pepper reached 868 tons, with a total import turnover of 28.9 million USD.

Compared to the previous month, import volume increased by 68.7%, turnover increased by 81.3% and compared to the same period in 2024, import volume increased by 32.5%, turnover increased by 104.9%.

Brazil returned to being the largest pepper supplier to Vietnam in March with an import volume of 3,061 tons, up 187.4% over the previous month, accounting for 62.0% of the import market share.

Next is Indonesia with 977 tons, down 29.8% and Cambodia with 514 tons, up 158.3%.

In the first three months of the year, Vietnam imported 9,686 tons of pepper of all kinds; of which black pepper reached 6,541 tons, white pepper reached 3,145 tons, with a total import turnover of 55.7 million USD.

Compared to the same period last year, import volume increased by 21.3% and turnover increased by 88.8%.

Brazil is the largest pepper supplier to Vietnam with 4,363 tons, equivalent to the same period last year; followed by Indonesia with 3,707 tons, up 385.2% and Cambodia with 735 tons, down 64.7%.

Despite positive export growth, US President Donald Trump's announcement of a minimum tax of 10% on all imported goods and a corresponding tax of 46% on imports from Vietnam has made pepper exporting enterprises worried. Because pepper is one of Vietnam's key agricultural products with a good market share in the US market.

Mr. Le Viet Anh - Chief of Office of the Vietnam Pepper and Spice Association (VPSA) - said that Vietnam is the largest pepper supplier to the United States, accounting for 77% of the total pepper imported by this country.

In contrast, the United States is also the largest export market for Vietnamese pepper. In 2024, pepper exports to the US reached 72,311 tons and recorded a record increase of 33.2%; turnover reached 409 million USD, accounting for 31% of total pepper export turnover to markets.

According to Mr. Le Viet Anh, the fact that the Donald Trump administration applied a 10% import tax on all goods imported into the United States has caused great concern for Vietnamese pepper exporting enterprises. Because in the first months of 2025, Vietnamese pepper enterprises signed many long-term orders with many US importers; some of which have delivery dates until August and September this year.

For export orders signed before Mr. Donald Trump announced the new tax policy on April 2, pepper prices did not include this 10% tax. Therefore, the risk of loss from orders signed before April is not small.

Faced with this situation, some businesses are considering renegotiating with US importers so that each side will bear a portion of the general tax rate for all imported goods of 10%. Regarding the corresponding tax on goods imported from Vietnam to the US, it is still unclear.

The pepper industry is beginning to study the specific tax rate for Vietnamese pepper to find the next response solution. Businesses still hope that the negotiations between the two governments will have positive results and pepper will only be subject to a minimum import tax of 10% without having to bear additional reciprocal taxes./.

Source: https://baolangson.vn/xuat-khau-kha-quan-doanh-nghiep-ho-tieu-van-lo-ung-pho-thue-cua-hoa-ky-5043331.html