Pepper Market Review Week 15 2025
Black and white Pepper Prices in Vietnam was under pressure with announcement of tariff for Vietnam origin produces @46% from end of last week and local prices dropped from 162000 Vietnam Dongs Per Kilo to 152000 Vietnam Dongs per Kilo and with the tariffs suspended for 90 days market levels increased to 156000 Vietnam Dongs per Kilo with indicative prices only and no firm offfers were available as local dealers feel market will open firm next week as some relief has come on tariffs though it’s only for 90 days, it was interesting to see the prices of Pepper in other Producing origins did not come under pressure at all except in India the prices dropped by US$ 200 pmt . Brazil and Indonesian prices continue to rule firm with most of the 2024 crop is sold and 2025 Catch crop in Indonesia seems to be not there at all.
Given the recent tariff announcement, global market reactions over the next 3-6 months are likely to be volatile, especially for countries directly affected by the tariffs. Here’s a breakdown of potential impacts:
Global Market Reactions
Short-term Volatility*: Markets may experience fluctuations as countries adjust to new tariffs and potential trade agreements. The US GDP is estimated to reduce by 0.8% due to Trump’s tariffs, with a potential further reduction of 0.2% from retaliatory tariffs.
Trade Agreements*: Countries exempt from the 90-day pause on reciprocal tariffs, like Vietnam, might see significant market movements based on potential new trade deals or escalations.
Vietnam-Specific Impacts
Exemption Status*: Vietnam’s exemption from the 90-day pause could lead to increased scrutiny and potential tariff adjustments, affecting its exports.
Market Reaction*: The Vietnamese Dong has already dipped by 0.7%, indicating market sensitivity to tariff announcements. Vietnam’s trade balance with the US will be crucial in determining its tariff rates after the 90-day pause.
Trade Negotiations*: Vietnam may engage in negotiations with the US to secure favorable trade terms, potentially impacting its market performance.
Sector-Specific Impacts
Exports*: Countries with significant exports to the US, like Vietnam, may face challenges due to tariffs. US imports from Vietnam could be subject to higher tariffs depending on the trade balance.
Agriculture and Manufacturing*: Sectors like agriculture and manufacturing might experience increased costs and reduced competitiveness due to tariffs.
Exporters are very cautious in giving firm offers as the prices remain highly volatile and the validity given is only an hour .
Please call us for your requirements of pesticide compliance and Asta cleaned and Steam Sterilised Black and White Pepper Requirements .
Best Regards
Jojan Malayil
United Spice Co Ltd/ Vietnam
+91 9895 4242 90
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