Options considered amid tariff questions

Vietnamese exporters are being advised to tighten supply chain management, enhance documentation transparency, and diversify their markets in response to shifting US tariff policies.

- By Bich Ngoc

Long-term uncertainties surrounding the direction of US trade policy, mounting pressure to reduce the goods trade deficit, and the potential rise of trade defence measures remain key concerns that Vietnamese businesses must carefully consider when engaging with this market.

At an online roundtable on US reciprocal tariffs and the effect on Vietnamese businesses held in early March in Ho Chi Minh City, experts noted that the temporary reduction of tariffs to 10-15 per cent could ease pressure on certain export sectors in the short term, although the risk of trade defence measures remains.

Dinh Truong Hinh, former senior economist at the World Bank, said the key issue at present lies in the US approach to tariffs.

"For more than 30 years, the current US president has consistently viewed tariffs as a key tool to protect US economic interests and reduce the trade deficit. As such, the policy direction of using tariffs to influence the trade balance is likely to continue even if the legal basis for their application changes," Hinh said.

Based on his analysis, the US effective tariff rate, measured as total tariff revenue over total import value, increased significantly in 2025.

By the end of the year, the rate applied to Chinese goods had reached around 33 per cent, while Vietnam faced an effective rate of about 12-13 per cent. Mexico's rate remained lower thanks to the advantages provided by regional trade agreements with the US and Canada.