Insight News

Coffee from Vietnam Enjoys U.S. Tax Cut from 20% to 0%

Published on 06.11.25

The U.S. Department of Commerce has officially reduced the import tariff on Vietnamese coffee from 20% to 0%, effective at the end of October. This decision marks a major milestone for Vietnam’s coffee industry. It reinforces the country’s competitive edge in the world’s second-largest coffee market.

According to the Vietnam Coffee and Cocoa Association (VICOFA), the tax cut is reasonable because the United States relies almost entirely on imported coffee beans. As a result, the zero-tariff policy will strengthen trade relations between the two countries and expand Vietnam’s export opportunities across the U.S. market.

Vietnam Maintains Strong Export Position

coffee
coffee

Source: DanViet

In the first nine months of 2025, Vietnam exported 1.27 million tons of coffee, earning USD 3.47 billion, a 2.9% year-on-year increase in volume and a 15.2% rise in value. The average export price reached USD 2,728 per ton, up 11.9% from the same period in 2024. Major importers included Germany, Italy, the United States, Japan, and Spain. With this strong performance, Vietnam continues to hold its position as the world’s second-largest exporter, only after Brazil.

A Catalyst for Premium and Sustainable Coffee

Industry experts believe the U.S. tax cut will encourage Vietnamese exporters to invest more in quality, traceability, and sustainability — key factors for American consumers. Moreover, major companies such as Intimex Group and Simexco Daklak are expected to benefit from reduced costs and better market access. Meanwhile, this policy aligns with Vietnam’s long-term goal to boost processed coffee exports and reduce dependence on raw beans. It also supports efforts to expand value-added production and green logistics capacity.

Coffee Logistics Advantage Strengthens Competitiveness

Vietnam’s upgraded logistics infrastructure — including modern ports and faster customs clearance — has helped maintain coffee freshness and delivery efficiency.
In addition, the new tax exemption will lower total landed costs.

Therefore, Vietnamese exporters can compete more effectively with suppliers from South America and Africa.

Looking Ahead

With zero tariffs and expanding sustainability initiatives, Vietnam’s coffee industry is entering a new growth phase in the U.S. market. The synergy between trade facilitation and logistics modernization is expected to push coffee export turnover beyond USD 4 billion by year-end, reinforcing Vietnam’s ambition to become a global hub for high-quality, responsibly sourced coffee.

Source: DanViet

06/11/2025

Team Marketing