Lombok. Despite facing steep import tariffs imposed by the United States, organic vanilla producers from Lombok in West Nusa Tenggara remain resilient in maintaining their foothold in the American market. The commodity, known for its high value and labor-intensive production process, continues to find loyal buyers abroad, even amid tightening global trade conditions and adverse weather patterns at home.

Earlier this month, US President Donald Trump delayed a 32 percent import tariff on goods from developing nations, including Indonesia, for 90 days. The move, part of a broader protectionist strategy, has alarmed Indonesian exporters across multiple sectors. Among the hardest hit are producers of raw agricultural commodities such as organic vanilla, a key export for farmers in West Nusa Tenggara.

Yet for business owners like H. Mohir, founder of UD. Rempah Organik Lombok, the US market remains critical. Despite the higher costs, his company has continued to ship vanilla to American buyers.

"All of our spice buyers in the US are frustrated by this policy,” Mohir said on Monday. “Vanilla isn’t something they can easily grow themselves, so their dependence on our supply remains high.”

Vanilla cultivation is climate-sensitive and unsuitable for most US regions, which makes exporters from Indonesia, Madagascar, and Papua New Guinea vital to the global supply chain, especially for organic-certified varieties. Unlike electronic or textile goods that can be locally produced, vanilla remains nearly irreplaceable.

“We’re still in close contact with our buyers in the US, and they’re committed to purchasing our entire harvest despite the increased costs,” Mohir added.

Indonesia is the world’s second-largest vanilla producer after Madagascar. Known for its strong and long-lasting aroma, Indonesian vanilla holds significant potential to expand its footprint in global markets. Despite being a top producer, Indonesia only ranks seventh in global vanilla exports, contributing around 2.63 percent to total global trade. In 2022, the top five export destinations for Indonesian vanilla were the United States (64.93 percent), Germany (8.62 percent), the Netherlands (7.53 percent), Singapore (2.63 percent), and Canada (2.5 percent). 

The current growing season has been challenging. High rainfall has disrupted pollination, leading to a 30 percent drop in production compared to previous years. Mohir estimates his farm will yield just 4 to 5 tons of organic vanilla this year.

Still, demand from the US remains strong. Before the new tariffs took effect, UD. Rempah Organik Lombok had already shipped 150 kilograms in early 2025, reflecting the continued commitment of US buyers.

At the farm level, vanilla prices have remained relatively stable, bringing relief to local farmers who depend on the crop for their livelihoods. However, exporters like Mohir are feeling the pinch. “Our profit margins used to be around 10 percent. Now it’s down to 3 percent. We’re not profiting much, but at least we’re not losing money,” he said.

With the US market still accounting for the majority of his exports, Mohir is exploring diversification into other regions. So far, interest from alternative markets has been limited.

He hopes the Indonesian government will step in with trade negotiations to secure tariff exemptions for critical agricultural exports. “We need diplomatic efforts to reduce or remove these tariffs, especially for products like organic vanilla that the US can’t produce domestically,” Mohir urged.

Vanilla remains a delicate and high-maintenance crop. Prolonged rains and manual cultivation requirements make it vulnerable to climate shifts. Still, Mohir and his farming network are investing in sustainable practices to secure future harvests.

“Vanilla is highly sensitive to climate. If it rains too much, the flowers fall off and the harvest fails,” he said. “We’re doing everything we can to adapt.”

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