The tariff, announced by U.S. President Donald Trump, targets over 180 U.S. trading partners. Several large trading partners could face tariffs as high as 50% starting April 9, with Vietnam specifically expected to face a 46% tariff. This tariff was cited as reciprocal, responding to Vietnam’s alleged 90% import duties on American products.
Ta Hoang Linh, director of the ministry’s Department of Foreign Market Development, challenged this assertion, noting Vietnam’s actual average Most Favored Nation (MFN) tariff rate for imported goods stands at just 9.4%. The MFN rate is the standardized import duty that WTO member countries pledge to apply equally unless special agreements, like free trade deals, exist.
Linh emphasized Vietnam’s proactive approach in resolving trade imbalances with the U.S., highlighting recent moves such as lowering MFN rates on 16 categories of goods, including those important to American businesses. For instance, tariffs on certain wood products were recently reduced from 20% to 0%.
In 2024 alone, Vietnam exported goods worth $119.5 billion to the U.S., while importing $15.1 billion, according to Vietnam Customs. Despite this imbalance, Linh argued that Vietnam and the U.S. are complementary trade partners, providing affordable goods to American consumers rather than competing directly.
The U.S. administration stated the tariff aims to tackle global trade unfairness and reduce America’s trade deficits. It would remain effective until the perceived trade issues are resolved.
Vietnam’s trade ministry said that such a statement showed that there is no longer room for negotiation to achieve a good result for both Vietnam and the U.S.
Minister Nguyen Hong Dien sent a diplomatic note requesting a temporary suspension of the tariffs pending further discussions. A bilateral dialogue will be planned soon between Vietnamese and American trade officials to seek a resolution.
Without a positive outcome, Vietnam’s ambitious export growth target of 12%, totaling $450 billion, could be negatively impacted. Linh advised Vietnamese exporters to leverage the 17 existing free trade agreements involving over 60 countries and territories, as well as encouraging market diversification.
“The U.S. represents 13% of global imports,” Linh noted, urging businesses to tap into the remaining 87% and new markets like the Middle East, Latin America, and Central Asia, where Vietnam is actively negotiating new trade agreements.
