The U.S. Imposes 46% Tariff on Vietnamese Goods: A Major Challenge for the Export-Driven Economy

Ho Chi Minh City, April 3, 2025 – The United States’ decision to impose a 46% tariff on 90% of imported goods from Vietnam is posing serious challenges for export businesses and Vietnam’s economy as a whole.

High Tariffs with Widespread Impact

According to Vietnam Pictorial – a publication under the Vietnam News Agency, the new U.S. tariff policy officially took effect in early April 2025 and applies to the majority of imported goods from Vietnam. These include textiles, footwear, furniture, electronics, and agricultural products – Vietnam’s key export sectors.

In its statement, the U.S. government said the move is part of a strategy to reduce trade deficits and rebalance domestic production. Along with Vietnam, several other economies such as China, India, Japan, and the EU were also subject to tariffs at varying rates, but Vietnam faces the highest rate.

Impact on Businesses and Labor

Experts predict that the high tariff rate will make it difficult for many Vietnamese companies to maintain existing contracts, as export prices to the U.S. will rise significantly. Some export orders may be delayed or canceled.

“We are working urgently with our U.S. partners to renegotiate prices and delivery schedules, while also considering shifting exports to other markets,” said Mr. Nguyễn Trí Dũng, Director of a wood export company in Binh Duong.

In addition to the potential drop in export turnover, hundreds of thousands of workers in the textile, footwear, and wood processing industries may face reduced working hours or job losses if the situation continues.

Negative Reaction from Financial Markets

Immediately after the announcement, shares of manufacturers with supply chains in Vietnam—such as Nike, Adidas, and Puma—fell sharply. According to Reuters, investors are concerned about rising production costs and potential supply chain disruptions from Southeast Asia.

Timely Policy Response Needed

In response to the situation, Vietnam’s Ministry of Industry and Trade stated that it is working with U.S. authorities to clarify the origin of Vietnamese goods and request a reassessment of the tariff level. At the same time, the government is encouraging businesses to:

• Diversify export markets through free trade agreements such as EVFTA, CPTPP, and RCEP.

• Increase localization rates and the added value in products.

• Improve supply chain transparency and product origin to avoid anti-circumvention investigations.

“Vietnam needs to leverage bilateral negotiations to seek appropriate solutions while accelerating institutional reforms and enhancing the competitiveness of domestic enterprises,” said Dr. Trần Quốc Hưng, economist at the Vietnam Institute for Economic and Policy Research (VEPR).

Looking Ahead

In the short term, Vietnam’s economy will face pressure on export growth and employment. However, by effectively leveraging existing FTAs, boosting production capacity, and reducing dependence on a single market, Vietnam can turn challenges into opportunities.

Sources: Vietnam.vnanet.vn, Reuters