President Donald Trump has announced a sweeping 46 percent import tariff on goods from Vietnam, citing trade imbalances and currency manipulation. Vietnam’s current average MFN tariff rate is 9.4 percent, significantly higher than the U.S. average of 3.3 percent, according to a White House press release. The U.S. also criticised Vietnam for restricting imports of remanufactured goods.
Of note, domestic media outlet Tuoi Tre in Vietnam has sourced responses from local businesses.
- Ngo Sy Hoai, Vice President of the Vietnam Wood and Forest Products Association, told the publication the tariff was “terrible,” particularly for wood exporters.
- Mac Quoc Anh, Vice President of the Hanoi SME Association, said the tariff is “almost blocking” Vietnam’s access to the U.S. market, especially for wood, textiles, seafood, and household goods.
- The publication also notes that businesses are rushing to ship goods before the tariff order takes effect and are scrambling to restructure operations to absorb the shock.
Conversely, Dan Tri has covered the announcement by looking at the market response. It notes that:
- The VN-Index dropped over 43 points shortly after markets opened on April 3, plunging below the 1,300-point mark. Sectors hit hardest included real estate, banking, steel, and tech.
- The panic in Vietnam is mirroring global sentiment, with U.S. markets also plunging following Trump’s broader tariff announcement.
This announcement threatens Vietnam’s competitive edge in global trade, especially compared to regional rivals like Mexico, India, and Thailand. Notably these tariffs are among the highest announced. Despite moving to reduce some MFN tariff rates and agree to make major purchases from the US to try and preempt excessive tariffs, Vietnam still looks to have been one of the worst affected. It’s not clear what the country’s next move might be.
See also: Buy More, Sell Less: Tackling Vietnam’s Trade Surplus with the US