ASSESSMENTS

Trump's Tariffs Pose a Structural Threat to Vietnam's Economy

Apr 8, 2025 | 20:59 GMT

Vietnamese garment workers stitch apparel at a factory in Ho Chi Minh City, Vietnam, on April 3, 2025, after U.S. President Donald Trump unveiled sweeping new tariffs on trading partners.
Vietnamese garment workers stitch apparel at a factory in Ho Chi Minh City, Vietnam, on April 3, 2025, after U.S. President Donald Trump unveiled sweeping new tariffs on trading partners.

(HUU KHA/AFP via Getty Images)

New U.S. tariffs on Vietnam present a severe threat to the Southeast Asian nation's export-based economy, creating substantial risks that could compel a strategic drift toward China. On April 2, U.S. President Donald Trump announced a sweeping 46% tariff on all U.S. imports from Vietnam, effective April 9, under the White House's new Reciprocal Tariff Program. Vietnam was among the hardest-hit countries in the announcement. The move triggered a rapid, high-level response in Hanoi. On April 4, General Secretary To Lam, the country's de facto top leader, held a direct phone call with Trump during which he offered to eliminate all Vietnamese tariffs on U.S. imports, with Lam urging Trump to adopt a reciprocal approach. Vietnam has also resorted to behind-the-scenes engagement with U.S. stakeholders and key third-party intermediaries, including Japan, South Korea and U.S. industry groups like the American Chamber of Commerce in Vietnam....

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