The U.S. administration has recently issued new tariff letters to over a dozen countries, with reciprocal tariffs up to 50% now scheduled to take effect on August 1, 2025, unless new trade agreements are finalized. Originally set for July 9, the deadline was officially extended by executive order on July 7.
For companies in the spice industry—particularly those importing bulk goods—this development may directly impact ingredient costs, supply chain reliability, and pricing forecasts for the second half of the year.
This is what we know so far from the most recent negotiations (July 7–8, 2025):
Countries Receiving Tariff Letters (Key Suppliers at Risk)
At least 14 countries were sent official notices of new tariffs ranging from 11% to 50%. These include major spice and seasoning suppliers, such as:
- Vietnam: facing a 20% tariff, negotiations ongoing
- India: facing a 27% tariff, nearing a resolution
- Cambodia: revised to 36% (originally 49%)
- Laos: set at 40%
- Bosnia & Herzegovina: adjusted to 30%
- Tunisia, Malaysia, and others: up to 50%, based on product category
Many of these countries are key players in the global spice trade, especially for black pepper, turmeric, chili, star anise, and cardamom.
Which Ingredients Could Be Affected?
Vietnam
- Major supplier of black pepper, cassia, ginger, and chili
- 2024 exports to the U.S. totaled over $1.4 billion across food categories
- A 20% tariff could significantly impact spice input costs for blends and re-packers
India
- Top supplier of turmeric, chili powder, coriander, cumin, and fenugreek
- Over $2.6 billion in U.S. imports of Indian food-related goods in 2024
- New tariffs could raise landed costs by up to 27%
Cambodia & Laos
- Not top-10 exporters in spice volume, but exporters of dried herbs, moringa, and aromatic leaves
- With 36–40% tariffs, even niche ingredients could see major price increases
Countries Nearing Agreements
Some regions have either finalized trade frameworks or are close to doing so:
- Vietnam, India, and China: deal frameworks under discussion
- South Korea and Japan: both received 25% tariff notices, but negotiations remain active
- EU: working through an extended negotiation round; no final outcome yet
How This Might Impact Pricing
To put it simply: if no deals are reached, bulk importers may need to reprice contracts, adjust forecasts, or seek alternative origins.
For example:
| Ingredient | Main Source | Current Import Tariff | Proposed Tariff (Aug 1) | Potential Cost Increase |
| Black Pepper | Vietnam | 0–2% | 20% | +18–20% landed cost |
| Turmeric | India | 0–5% | 27% | +25–28% landed cost |
| Moringa Powder | Cambodia | 0% | 36% | +36% landed cost |
For spice buyers importing by container or pallet, these changes could result in thousands of dollars in added duties per shipment.
What Happens Next?
The new enforcement date is August 1, 2025. If no deal is reached with a given country, tariffs will take effect immediately on all categories of imported goods, not just spices.
If your supplier is located in one of the affected countries, consider:
- Reviewing contracts for delivery schedules in Q3/Q4
- Checking if your broker or customs partner has updated HS code classifications
- Running a cost impact analysis on core ingredients
- Evaluating secondary origins or U.S.-based processors for certain goods
This is not the first time we have faced sudden tariff shifts. Those who have diversified sourcing and maintained flexible pricing structures tend to manage these transitions more smoothly.
As we await the final status of these trade deals, now is the time to:
- Check your current exposure by country
- Estimate tariff impact per SKU
- Communicate with suppliers early
If you’d like support reviewing your spice category or assessing tariff risk, we’re happy to help.