The General Statistics Office of Vietnam has released a report highlighting 15 major export categories likely to be significantly affected by potential U.S. retaliatory tariffs. In anticipation of the possible end to the current 90-day tariff suspension, the agency recommends a series of “solutions to respond to U.S. tariffs” to help Vietnamese enterprises stay proactive.
Existing Tariff Burdens and New Threats
Vietnamese exports to the U.S. already face an average import duty of 12%. Some products are taxed as high as 27% due to the lack of a bilateral Free Trade Agreement (FTA) with the United States. Recently, former President Donald Trump announced a new tariff proposal of up to 46%, which is temporarily suspended for 90 days. While not universal, these tariffs will be applied to specific goods line-by-line. Notably, high-value exports such as mobile phones and computers are currently exempted.
15 Key Export Categories Needing Solutions to Respond to U.S. Tariffs
The General Statistics Office of Vietnam has identified 15 critical export categories that are likely to face significant impacts due to U.S. tariffs. These categories include key sectors such as computers and components, machinery and equipment, textiles and garments, and phones and components, as well as products like footwear, seafood, and agricultural items. Other sectors such as wood and wood products, plastic products, toys, and steel products are also included in the list, reflecting their significant contribution to Vietnam’s export economy.
In 2024, the combined export value of these categories reached an impressive USD 119.5 billion, showing a remarkable increase from USD 77.1 billion in 2020. However, Vietnam’s imports from the U.S. during the same period amounted to just USD 15.1 billion, highlighting a significant trade imbalance. This discrepancy is a key driver behind the U.S. government’s decision to impose tariffs, with the intention of addressing the trade imbalance and balancing the economic relationship between the two nations.
Top 3 Export Groups Require Immediate Attention
Among these, three categories account for over 51% of total export volume to the U.S. and must be prioritized when crafting solutions to respond to U.S. tariffs:
- Computers and components: USD 23.2 billion
- Machinery and equipment: USD 22.1 billion
- Textiles and garments: USD 16.2 billion
Short-Term Measures: Contract Renegotiation and Price Adjustments
In the short term, the General Statistics Office advises businesses to stay calm and proactive by renegotiating contracts and adjusting pricing structures to accommodate new tariffs. These immediate actions are vital to implementing effective solutions to respond to U.S. tariffs and maintaining supply chain stability.
Although the 10% tariff is temporarily paused, pre-existing contracts buffer the initial impact. However, future cost adjustments may trickle down to American consumers, potentially increasing retail prices for Vietnamese goods.
Medium-Term Strategy: Monitor Negotiations and Prepare Export Scenarios
Over the medium term, Vietnam should closely monitor bilateral negotiations between the two governments. Keeping up with U.S. tariff updates will allow domestic exporters to recalibrate production, pricing, and export planning.
Upcoming tariff schedules may target crucial Vietnamese exports such as automobiles, textiles, footwear, phones, and electronic parts. These developments could directly impact competitiveness and export volume.
Long-Term Vision: Market Diversification and FTA Utilization
To reduce dependency on the U.S. market, Vietnamese exporters are encouraged to explore opportunities in other FTA-partner countries such as the EU, Japan, and South Korea. Diversifying export markets and utilizing preferential trade agreements are essential long-term strategies in any effective solution to respond to U.S. tariffs.
This approach enhances export resilience, expands market access, and stabilizes income amid global trade uncertainties.
Improving Trade Balance: Import More from the U.S.
As part of a broader strategy to mitigate tensions, Vietnam is increasing imports from the U.S. Priority products include cars, cherries, apples, raisins, and high-tech items like aircraft, electrical equipment, and renewable energy solutions. These efforts not only ease trade imbalances but also boost domestic innovation and technological advancement.
Strengthening Bilateral Trade Mechanisms
Vietnam should maximize existing frameworks such as the Bilateral Trade Agreement (BTA) and the Trade and Investment Framework Agreement (TIFA) to support ongoing negotiations. Fully leveraging these instruments lays the foundation for sustainable and balanced trade relations, while forming a strategic backbone for long-term solutions to respond to U.S. tariffs.
Enterprises must align closely with government efforts and adjust export strategies accordingly to fully capitalize on these frameworks.
Conclusion: Vietnam’s Resilience Amid Trade Challenges
Despite looming trade barriers, Vietnam remains a reliable player in the global supply chain. With adaptable businesses and government-backed strategies, the country is well-positioned to implement practical and sustainable solutions to respond to U.S. tariffs, maintain its export momentum, and reinforce global trade partnerships.
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