Vietnam Exporters Gear Up as Trump Imposes New Tariffs

Donald Trump’s proposed tariffs on Vietnamese products have raised worries among exporters, who are concerned that this could undermine their competitive edge and prompt American purchasers to seek alternatives from different nations.

"Tensions are high," stated Nguyen Dinh Tung, chairman of the fruit exporting company Vina T&T Group, after discovering that Vietnam would face a 46% retaliatory tariff.

Ho Chi Minh Mausoleum in Hanoi, northern Vietnam, January 2025. Photo by VnExpress/Le Tan

For many years, Tung’s company has been exporting fruits to the U.S. and paying minimal duties, with one exception: durians, which incur a tariff as high as 16%.

In the previous year, the United States imported fruits and vegetables from Vietnam totaling $360 million, with the Vina T&T Group contributing $62 million to this amount.

But the new tariffs could hit his company if American buyers switch to produce from markets with lower tariffs.

American importers could shift their sourcing to Thailand and other nations due to nearly a 50% increase in tariffs acting as a significant financial strain, particularly amid an economic slump.

For many years, the United States has played a significant role as a key trading partner for Vietnam. Last year, Vietnam’s exports to the U.S. amounted to $119.5 billion, whereas imports from the U.S. were valued at $15.1 billion.

The top export items are computers and electronics, machinery and equipment, garments and textiles, smartphones, wood products, and footwear.

Le Duy Binh, CEO of consulting company Economica Vietnam, stated that these sectors are expected to suffer once the new tariffs take effect over the coming days.

The businesses within supply chains related to major export sectors would face impacts, he further explained.

Vietnam is among the group of countries subject to the highest tariffs . China, Cambodia, Indonesia, and Myanmar also face tariffs of 34-49%.

Nguyen Minh Duc, an expert in public policy, said the new tariffs would be a disadvantage for Vietnam since competitors in Thailand would only have to pay 36%.

He highlighted that the tariff for Indonesia is 32%, whereas for the Philippines, it is 17%.

"Electronics, garments, footwear, and furniture exporters in Vietnam will have to pay around 46% in tariffs within a week."

Hoang Anh Tuan, Vietnam’s consul general in San Francisco, stated in a social media post that President Trump’s new policy aims at decreasing the $1.2 trillion trade deficit the United States experienced last year as part of his administration’s efforts to cut down this figure.

He stated that the tariff policy relies on trade deficits, moving from sector-based to nation-specific rates according to trade discrepancies between countries like Vietnam and China.

He mentioned that Trump sees these "reciprocal" tariffs as only half of the amount estimated by the U.S., indicating some wiggle room and potential for negotiations between the two countries.

Certain items would not be subject to the reciprocal tariffs. Items such as aluminum, steel, automobiles, and automotive components, which were originally subjected to a 25% tariff imposed by the United States, will still face this same rate.

Gold, copper, pharmaceuticals, semiconductors, timber, along with specific energy and mineral resources not found within the U.S., will remain outside of these regulations as well.

To revive Vietnam’s competitive edge, Binh encouraged the government to shut down the tariff close gaps with other countries, expand export destinations, and strengthen the local market.

A number of nations have aimed to sustain an adequate export share while boosting their domestic market as a key component of economic growth.

He mentioned that the administration might reduce business administrative expenses and provide additional backing to companies.

He proposed increasing imports from the U.S. of items such as technology products to bring down the tariffs.

Vietnam holds negotiation power because the government might boost imports from the United States such as helicopters, aircrafts, energy supplies, and electric devices, according to him.

Tran Huu Linh, director general of the Domestic Market Management and Development Agency, under the Ministry of Industry and Trade, said measures to stimulate domestic consumption would be rolled out by studying policies in China and Thailand.

His agency is also working to ease regulatory obstacles faced by businesses, he added.