Although China temporarily suspended additional tariffs from May 14 to early August, uncertainty surrounding bilateral relations continues to plague the US cherry industry.
China was once a major destination for US cherries, particularly during the boom from 2015 to 2018. However, over the past two years, many US exporters have shifted their attention to other Asian markets such as Vietnam, South Korea, and Japan.
Canada remains the largest importer, accounting for 37% of US cherry exports.
Faced with tariff uncertainty with China, US cherry exporters have increasingly turned to alternative markets such as Vietnam, contributing to increased supply and historically low prices.
In some Vietnamese stores, prices have dropped to 189,000 Vietnamese dong (US$7.20) per kilogram, half of last year’s price. WinMart, one of Vietnam’s largest retail chains, ran a promotional campaign from July 8 to 23, drastically lowering prices to 299,000 Vietnamese dong (US$11.40) per kilogram, 160,000 Vietnamese dong (US$6.10) below the regular price. As a result, cherry sales increased by 140% compared to the same period last year.
According to the Vietnam Fruit and Vegetable Association, cherry imports reached US$28 million in the first five months of this year, representing a year-on-year increase of 43%. Vietnam is also negotiating a trade agreement with the United States to reduce reciprocal tariffs from 46% to 20%, offering in return the elimination of tariffs on US products.
The US Department of Agriculture forecasts that cherry production will reach 383,000 metric tons in 2025, an 8% increase over 2024.
This increased production has lowered domestic wholesale prices by 10 to 15 percent in June and July compared to last year.
As US exports to mainland China continue to face obstacles, surplus cherries have also been redirected to Hong Kong, bringing prices to their lowest level in 20 years. Cherries from Washington state are now selling for as little as HK$40 per pound (US$11.24 per kilogram) at the Yau Ma Tei wholesale fruit market.
According to Kingo Fruit, a local importer, peak daily sales have increased from 8,000 boxes last year to 12,000 this year. However, prices have also fallen dramatically, with five-kilogram boxes now selling for between 260 and 280 Hong Kong dollars (US$33.12 and 35.67), a 35% decrease.
In April, the total value of US fruit imported directly to Hong Kong increased by 118%. However, between February and April of this year, the value of fresh cherries re-exported from Hong Kong to mainland China decreased by 72% year-on-year.
Source: Fruits from Chile
