Navigating a Shifting World: U.S. Imposes 46% Tariff on Vietnam
On April 2, the U.S. government officially imposed a 46% tariff on goods imported from Vietnam — the highest rate among affected countries. This unexpected and sweeping measure is sending shockwaves through Vietnam’s export-driven economy, especially in key sectors like electronics, textiles, and agriculture.
The tariffs are part of a broader “reciprocal” trade strategy aimed at reducing the U.S. trade deficit and reshoring manufacturing. For Vietnam — a top U.S. trade partner with over $136 billion in exports to the U.S. last year — the impact could be significant.
🟠 Key Takeaways:
Vietnam's exports to the U.S. totaled $136 billion in 2024, now at risk of a $28–37 billion hit due to tariffs.
Up to 2% of Vietnam's GDP may be affected.
Affected sectors include electronics, apparel, footwear, machinery and furniture.
The Vietnamese government is rolling out immediate and long-term responses to minimize impact.
Want to understand the full picture? We have gathered expert insights and official commentary in the documents below. 🔍 Explore these curated documents to better understand what’s happening, what’s next, and what businesses need to prepare for:
📘 Initial Takeaways from U.S. Tariffs on Vietnam: A clear and business-focused summary of the situation. Download here.
- GDP impact estimated at 1.4–2.0%
- Sector-by-sector analysis of tariff exposure
- Insights into Vietnam’s diplomatic and domestic response
- The medium-term outlook for foreign investment and reforms
📗 BakerHostetler Vietnam–U.S. Trade Update (April 2025): A legal and policy-focused presentation from trade experts. Download here.
- Explains the legal basis for the tariffs (IEEPA & Section 232)
- Clarifies which products and shipments are exempt
- Details on penalties for non-compliance and how to mitigate risks
- Tips for companies affected by these changes
📕 Asia FX Weekly – MUFG Analysis on Reciprocal Tariffs: An in-depth economic research paper on how the tariffs are shaking up Asia. Download here.
- U.S. tariffs on Asia have tripled from 12% to ~40%
- Vietnam is among the most exposed economies, with an estimated 4pp GDP impact
- Includes forecasts for VND depreciation and interest rate cuts
- Also touches on potential regional spillovers and retaliation
📙 BMI Report: Global Tariff Impact Assessment (April 2025): A global strategic analysis from Fitch's BMI team. Download here.
- Confirms Vietnam’s 46.2% effective tariff on machinery
- Vietnam ranks among the most exposed economies
- Key sectors assessed: electronics, pharma, autos, lumber, copper, and aluminum
- Highlights shifting competitiveness toward Mexico and Canada
🔵 Looking Ahead:
Tariffs officially take effect April 9. The coming weeks will be critical as Vietnam negotiates and adapts. If your company operates in trade, manufacturing, or investment between the U.S. and Vietnam, now is the time to review exposure, update contracts and prepare responses. Stay tuned for more updates!