The Impact of Vietnam Tariffs on Exports: US-Vietnam Trade Relations in the Trump 2.0 Era

Former US President Donald Trump, now re-elected in what many call the “Trump 2.0 Era” has imposed sweeping new tariffs on global trading partners, placing an especially heavy burden on Vietnam Tariffs. 

With a staggering 46% tariff now applied across a broad swatch of Vietnamese exports, the economic effects are already being felt. 

As global supply chains scramble to adapt and businesses weigh alternative trade routes, the new Vietnam tariffs are a representation of realignment of global commerce and geopolitical alliances. 

Background: US-Vietnam Trade in 2024

Before the latest round of tariffs, trade between the United States and Vietnam had reached record highs. 

In 2024, Vietnam was among the fastest-growing trade partners for the US ranking within the top then for import volume. 

The US imported nearly $127 billion worth of goods from Vietnam, ranging from apparel and electronics to machinery and furniture. The GDP growth of Vietnam was heavily supported by this export-driven relationship, which fueled domestic industrial production, employment, and infrastructure investment. 

Vietnam had emerged as a favorite destination for companies looking to decouple from China due to earlier waves of “Trump tariffs” in his first term. However, those gains are now under renewed pressure as the US administration under Trump reasserts aggressive protectionist trade policies. 

Trump Imposed Reciprocal Tariffs on All Trade Partners and Raised Tariffs on Vietnam to 46%

As of April 2025, the Trump administration has instituted a flat 46% reciprocal tariff on countries the US deems as benefiting from “unfair trade balances.” 

Among these, Vietnam has been singled out due to its significant trade surplus with the US. The Vietnam tariff move is part of a broader framework to reshape trade relationships by imposing high import tariff rates on foreign goods unless similar access is reciprocated by the exporting nation. 

In Trump’s own words, this effort aims to “level the playing field” and “bring manufacturing back to American soil.” However, critics argue that these tariffs on Vietnam will not only disrupt the import-export balance but may backfire economically and diplomatically, especially in Southeast Asia. 

Impact of Vietnam Tariffs on Exports

46% Reciprocal Tariff 

The 46% blanket import tariff on Vietnamese goods has shocked markets. For an export-driven economy like Vietnam, this is no small matter. Industries such as electronics, textiles, and consumer goods are heavily dependent on US demand. 

With the new tariffs in place, these products face significant price increases for US buyers, threatening the competitiveness of Vietnamese exports in one of their largest markets. 

Exporters have already begun reporting order cancellations, delayed shipments, and requests for negotiated pricing from US clients. 

Businesses that once pivoted to Vietnam as an alternative to China in the wake of previous Trump tariff updates are now caught in a renewed storm of unpredictability. 

Steel and Aluminum Tariffs 

Beyond general trade, specific sectors are facing targeted tariffs. The steel and aluminum industries in Vietnam are not subjected to steep levies, some exceeding 25% in addition to the 46% base rate. 

These materials, already globally contested in trade wars, are now another point of pressure in US-Vietnam relations. 

The Vietnamese Ministry of Industry and Trade has stated that the new tariffs threaten to decimate small-scale manufacturers, especially those exporting structural steel and finished aluminum parts. 

This sector, which benefited from the 2020-2023 surge in US infrastructure demand, now faces a steep uphill battle. 

25% Auto Tariffs 

While Vietnam’s auto industry is relatively small compared to neighboring markets, the rise of electric vehicle (EV) assembly and component manufacturing has placed Vietnam on the radar of US importers. 

The imposition of a 25% auto tariff has effectively halted this growth. EV startups and global joint ventures operating out of Vietnam are now reassessing expansion plans amid this volatile climate. 

Why Trump Imposed Steep Tariffs Vietnam

According to the administration’s official stance, Vietnam has benefited disproportionately from the US-China trade ware by positioning itself as a substitute manufacturing base without offering reciprocal market access. 

Trump claims that Vietnam’s trade surplus is “unsustainable” and reflects what he labels as “manipulative practice” such as currency suppression and industrial subsidies. 

Yet many analysts argue that the decision is largely political. The Trump tariffs Vietnam are seen as an attempt to score domestic points by appearing tough on trade, regardless of broader geopolitical risks. 

There is also growing concern that such aggressive tactics may push Vietnam closer to China’s sphere of influence, a strategic consequence the US can ill afford. 

Apparel Industry is Nervous Over Potential Vietnam Tariffs

Among the hardest hit is Vietnam’s apparel industry. For years, US fashion brands have relied on Vietnamese manufacturers for high-volume, low-cost production. 

The 46% tariff on garments has sent shockwaves through this sector. Many brands are now facing steep cost increases or are contemplating a shift to other Southeast Asian nations such as Bangladesh or Cambodia. 

Vietnamese factory owners have reported that several US clients are halting orders or seeking emergency renegotiations. 

With apparel being one of the most labor-intensive industries, the fear of mass layoffs and factory closures hangs large. 

The sector once perceived as a safe space from Chinese supply chain volatility, is now once again in flux. 

Possible Purther Vietnam Tariffs and Trade Deals

There is growing speculation that the Trump administration may expand its tariff scope to include services, tech exports, or even food-related imports from Vietnam

Furthermore, US tech companies that rely on Vietnamese hardware suppliers may soon find themselves caught in a tangle of restrictions. 

Vietnam, for its part, is actively exploring new trade partnerships with the European Union and Asian neighbors to hedge against US dependency. 

Officials have hinted at fast-tracking digital economy agreements and reducing tariffs with ASEAN nations in response. 

Vietnam Offers 0% US Import Tax

Vietnam has offered to eliminate all Trump from Vietnam to US goods as a gesture of goodwill and economic partnership. 

This comes amid concerns over losing market access and economic stability. According to Bloomberg and Vietnam Briefing, this proposal includes 0% tax rates on agricultural goods, machinery, and even US-branded food products, a strategic attempt to de-escalate trade tensions. 

However, the Trump administration has not formally responded, and it remains unclear whether this offer will be enough to reverse or soften the tariffs on Vietnam in place. 

Some experts believe the White House may view this as a concession worth negotiating while others fear it will be dismissed in favor of continuing a hardline stance.