Hanoi (VNA) - The new tariff policy from the US is set to have direct implications on numerous countries, including Vietnam. Experts warn that amid the volatility of global trade, Vietnamese businesses must adapt, particularly by exploring new markets as a key strategy to mitigate damage in an increasingly unpredictable trade environment.
On the afternoon of April 2 (local time), US President Donald Trump signed an executive order imposing reciprocal tariffs on dozens of economies, effective April 9. Vietnam faces a tariff rate of up to 46%.
According to Do Ngoc Hung, Head of the Vietnam Trade Office in the US (under the Ministry of Industry and Trade – MoIT), this is a notably high tariff rate – second only to Cambodia’s 49%. Vietnam's rate surpasses even those imposed on China (34%), the EU (20%), India (26%) and Japan (24%). If implemented, such a rate would pose significant challenges to the country’s exports to the US market.
Hung added that, immediately following the tariff announcement, the trade office contacted representatives of the US Trade Representative (USTR) to seek further clarification regarding the rationale behind the calculation and to gather more detailed information.
In the timber sector alone, Vietnam exported over 9 billion USD worth of wooden goods to the US in 2024, mostly refined products and furniture, which currently benefit from zero or very low tariffs. In contrast, Vietnam imports 332 million USD worth of timber from the US, including 301 million USD in raw logs and sawn timber, both taxed at 0%. The remainder, worth over 20 million USD, was subject to tariffs ranging from 15% to 25%.
Ngo Sy Hoai, Vice Chairman and Secretary General of the Vietnam Timber and Forest Products Association, noted that the Government’s recent Decree 73, issued on March 31, included cutting tariffs on all US timber products to 0%. This move is expected to help foster sustainable Vietnam – US trade relations and reduce the risk of tariffs being imposed on the timber industry.
He added that businesses should focus on diversifying export markets as a precaution against future trade disruptions. While global trade trends show increased liberalisation, they are also accompanied by rising protectionism and technical trade barriers in major markets, Hoai said. Strengthening trade defence capabilities is also a necessary response.
In the textile and garment industry, the US accounts for a significant share of exports, with some Vietnamese firms exporting as much as 40% of their products to the market. Nguyen Xuan Duong, Chairman of the Hung Yen Garment Corporation, described the proposed tariffs on textiles as a serious concern that could directly affect business performance in the near future.
He said his company is gradually shifting to FOB production (where firms control sourcing and product completion), which enables sharing the tax burden with clients. At the same time, it is expanding into potential markets such as Russia, Australia and New Zealand, while taking advantage of tariff reduction roadmaps under FTAs signed with the EU to strengthen exports.
Vietnam and the US have 30 years of established bilateral diplomatic relations, have 10 years of a comprehensive partnership, and have benefited from a comprehensive strategic partnership for the last two years. Vietnam and the US have spurred cooperation across all areas, with the economy, trade and investment ties serving as key drivers. According to the MoIT, bilateral trade reached nearly 150 billion last year, up 20.5% from the previous year.
According to the Ministry, the complementary nature of the two economies and their import-export structures has allowed bilateral trade to grow steadily over the years, safeguarding core national interests and laying a strong foundation for sustained cooperation.
Vietnam’s consistent policy is to build a harmonious, sustainable, and mutually beneficial economic and trade relationship with the US. Also, Vietnam has no intention of creating any obstacles that could harm US workers, economic security, or national security, said Minister of Industry and Trade Nguyen Hong Dien./.
