Sourcing Green Tea Powder From Vietnam While Matcha Stays Tight

Three pieces of news from the past few months matter to anyone buying green tea powder or leaf from Vietnam. Japan’s own supply of matcha and tencha is still tight. The United States has put a 12.5 percent Section 301 tariff on products of Vietnam, but tea is on the exclusion list. And Vietnam’s tea exports are shipping in smaller volumes at higher average prices.

None of this changes how good sourcing works. It does change the questions you should ask, the timing of your orders and how carefully you should word your labels. This article sets out what happened, with dates and sources, and what a buyer can do about it.

What happened

Japan’s matcha squeeze shows up in trade data

Customs data from Japan’s Finance Ministry, reported in May 2026, show green tea exports of 13,125 metric tons in fiscal 2025 (the year that ended in March 2026), up 42 percent on the year before. Export value rose 2.2-fold to 84.7 billion yen. Powdered green tea, including matcha, made up about 70 percent of export volume, as reported by Nation Thailand.

The same data show Japan importing 5,801 metric tons of green tea from China and other countries in fiscal 2025, up 82 percent. A country that exports more green tea while importing much more of it is a country whose domestic supply is stretched. Tencha, the shaded leaf used for matcha, cannot be scaled quickly because new tea fields take years to reach full yield.

For buyers outside Japan the practical effect is simple: Japanese matcha is harder to secure in volume and at stable prices, so brands, cafe chains and food manufacturers are looking at other origins for green tea powder. Vietnam is one of them.

The US tariff on Vietnam excludes tea

In July 2026 the Office of the US Trade Representative announced tariffs under Section 301 on products of 60 economies found to have failed to impose or enforce a ban on goods made with forced labor. For Vietnam the rate is 12.5 percent, applied to goods entered on or after 12:01 a.m. eastern time on 24 July 2026, except as provided in the annexes of the USTR notice.

Heading 9903.05.86 in that notice lists the HTSUS provisions to which the new duties do not apply. The list includes 0902.10.10, 0902.10.90, 0902.20.10 and 0902.20.90 (green tea, flavored or not, in packings up to 3 kg or above 3 kg) and 0902.30.00 and 0902.40.00 (black and partly fermented tea). In plain terms, green tea classified under heading 0902 from Vietnam does not carry the 12.5 percent Section 301 duty. Ordinary duties and other charges still apply.

Two cautions. First, not every tea product sits in heading 0902. Instant tea, extracts, tea with added ingredients and some ready-to-mix preparations are classified elsewhere, and the exclusion list covers only specific codes. Second, the tariff picture may move again. On 21 September 2026 in New York, Vietnam’s President To Lam and US Trade Representative Jamieson Greer said negotiators were very close to a final outcome on a reciprocal trade agreement, according to VnExpress International. No product-level terms were published.

Vietnam ships less tea at higher prices

Data from Vietnam’s Ministry of Agriculture and Environment, reported by Nhan Dan on 3 September 2026, show tea export volume down 10.2 percent in the first eight months of 2026, while the average export price rose 9.1 percent. Export value fell only 2 percent as a result.

A rising average price can mean a better product mix, tighter supply or both. For a buyer it means one thing in practice: do not expect last year’s price to hold without checking.

Why it matters for a green tea powder buyer

Supply of true matcha from Vietnam is small

Vietnam produces a great deal of green tea and a much smaller amount of powder. Capacity for Japanese-style shade-grown tencha is limited. Most powder offered from Vietnam is milled from conventional steamed or pan-fired leaf, and that product has real uses: lattes, bubble tea, bakery, ice cream, smoothies and blends.

When matcha is scarce, the pressure to relabel ordinary green tea powder as “matcha” rises on every side of the trade. Resist it. If the leaf was not shaded and processed as tencha, describe it as green tea powder or culinary green tea powder and put the growing and milling method on the spec sheet. That protects your brand if a customer, retailer or regulator asks how the product was made.

Cost is a combination of leaf, milling and compliance

Powder cost does not follow leaf cost one to one. It adds deveining where used, milling, sieving, color and particle size control, nitrogen flushing and tighter moisture limits. Residue testing is a larger share of the cost for small powder batches than for bulk leaf, because the same lab panel covers fewer kilos.

For US buyers the tariff exclusion removes one cost item for heading 0902 tea, which makes Vietnamese powder easier to compare against other origins. For EU, Japanese and Korean buyers nothing changes on the tariff side, but the residue side becomes more important, not less.

Residue limits do not relax because supply is tight

A powder is the whole leaf, consumed whole. Any pesticide residue in the leaf goes straight into the drink or the cake. The EU sets maximum residue levels under Regulation (EC) No 396/2005 and Japan applies its positive list system with a low default limit for substances without a specific limit. Both are strict for tea. A lot that was tested for the US market will not automatically pass an EU or Japanese panel.

Ask for a recent residue report from an accredited laboratory, tied to the lot number you are buying, and run your own test on the approved sample and on the first shipment.

A practical checklist for buyers now

1. Name the product honestly. Decide at the start whether you are buying shade-grown tencha powder or green tea powder, and write it in the RFQ. Ask each supplier how the leaf was grown, whether it was shaded and for how long, how it was fixed and dried and how it was milled.
2. Specify the powder, not just the tea. State particle size (mesh or micron), color target, moisture maximum, bulk density if it matters for your filling line and packing (foil bags, nitrogen flushed, carton size).
3. Set the residue panel by destination. EU, US and Japan panels differ. Name the panel and the laboratory reports you accept. Our importer guide covers the documents to request.
4. Confirm the HTS code before you price (US buyers). Ask your customs broker to confirm the 10-digit code for your exact product. If it sits in heading 0902, check it against the 9903.05.86 exclusion list. If it is an extract, instant tea or blend, check separately.
5. Ask for quote validity in writing. With export prices rising on average, ask each supplier how long a quote holds and whether it is tied to a crop season.
6. Plan lead time with room for testing. Allow for samples, your own lab work and a trial order. Milled powder is often produced to order, so ask for batch size and milling lead time.
7. Consider leaf as well as powder. Some buyers mill in their own market or use a toll miller. Buying steamed leaf from Vietnam and milling closer to the customer can make sense for large volumes. See the green tea grades overview for leaf styles.
8. Keep a retention sample. Seal a sample of the approved lot and compare the shipment against it on arrival.

What to watch over the next six months

• The US and Vietnam trade agreement. If an agreement is signed, check whether it changes the rate or the product scope for Vietnamese goods and whether the Section 301 exclusions still apply as written.
• Japan’s next harvest and trade data. New tea fields take years to mature, so tight Japanese supply may last beyond one season. Watch Finance Ministry trade data for green tea exports and imports.
• Vietnam’s full-year tea export figures. The Ministry of Agriculture and Environment reports monthly. A continued fall in volume with rising prices would point to firmer quotes in 2027 contracts.

Send a green tea powder spec

If you are looking at Vietnamese green tea powder or leaf as an alternative or complement to Japanese supply, send your spec through the RFQ form. State the product type, particle size, residue panel, volume and destination. We review each request and match you with up to 3 suitable Vietnamese suppliers within 24 business hours. You then receive quotes and samples directly from them and negotiate on your own terms. The service is free for buyers, and an NDA can be signed before you share detailed specifications.

Frequently asked questions

Sources

• USTR: Notice of Actions in Section 301 Investigations (forced labor), July 2026
• Nation Thailand: Global matcha boom sends Japan green tea exports sharply higher
• Nhan Dan: Viet Nam's agro-forestry-aquatic exports rise 7% in eight months
• VnExpress International: Vietnam, US close to reaching reciprocal trade agreement