Impact of US Reciprocal Tariff Exemption on Vietnam’s Organic Spice Industry and DACE

08-12-2025

The recent U.S. reciprocal tariff exemption applied to many agricultural products – especially spices under HS Chapter 09 – marks a significant turning point for Vietnam’s organic spice industry.

From tariffs to triumph, Vietnam holds the key to US trade strategy | Lowy Institute

Impact of US Reciprocal Tariff Exemption

Lower Export Costs – Stronger Competitiveness in the US spice market

The tariff exemption reduces overall export costs, allowing Vietnamese suppliers to offer more competitive pricing. This enhances order frequency, improves distributor access, and increases Vietnam’s presence in the US spice market.

Boosting Demand for Organic Spices

Nowadays, U.S. consumers move toward organic and traceable ingredients. The exemption of reciprocal tariffs narrow down the price gap between organic and conventional spices, making Vietnamese organic spices more attractive for US customers. This policy creates ideal conditions for accelerated growth of Vietnamese spices in the U.S.

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Impact on DACE – an Organic Spice Supplier

Almost all of DACE’s main products, such as ginger, turmeric, cinnamon, star anise, chili are now exempt from reciprocal tariffs. In contrast, garlic and lemongrass are not included in this exemption and will likely remain subject to reciprocal tariffs.

As a leading Vietnamese producer and exporter of organic spices, DACE benefits strongly from this new policy:

    • More competitive pricing: Most of DACE’s core products now fall under the exempt categories, allowing the company to offer better pricing, attract larger importers, and expand volumes more easily.
    • Higher demand for DACE Organic Spices: With organic products becoming more price-accessible, DACE is well positioned to reach high-end retail chains, food manufacturers, and sustainable customers in the U.S.
    • Greater motivation to expand and upgrade: Tariff-related savings support DACE’s ongoing investments in: Organic farming expansion, modern processing capacity, quality control and traceability systems.

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The impact of US reciprocal tariff exemption goes beyond cost advantages. It creates a strategic boost for both Vietnam’s spice industry and DACE.

⭐DACE remains committed to delivering the highest-quality organic spices with the most competitive pricing to customers worldwide.

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