Hit with 46 Percent Tariff, Vietnamese Businessmen File for Delay

HANOI, SUNDAY – Vietnamese citizens and American entrepreneurs in Vietnam have urged U.S. President Donald Trump to postpone the implementation of a 46 percent tariff on products originating from Vietnam. U.S. and Vietnamese entrepreneurs stated that the tariff damages the trade relations between the two countries, which have been running smoothly so far.

The Vietnam Chamber of Commerce and Industry and the US Chamber of Commerce in Vietnam expressed their concerns to US Secretary of Commerce Howard Lutnick in a letter dated Saturday (5/4/2025). The new tariffs imposed by the US have unsettled them.

"Low tariffs on Vietnamese products purchased by U.S. consumers are something that benefits corporations, the economy, and the people of the United States," stated the letter from the U.S. Chamber of Commerce in Vietnam (AmCham) and the Vietnam Chamber of Commerce. According to them, high tariffs will not help anyone. Both organizations emphasized that a fair agreement would provide certainty for businesses and improve trade relations between the two countries.

Vietnam serves as a manufacturing base for many Western companies, recording a trade surplus of 123 billion US dollars with the United States, Vietnam's primary export destination in 2024.

Risk analyst at the BMI firm, Sayaka Shiba, stated that the tariffs imposed by Trump on Vietnam would significantly damage the country's current growth model. As mentioned, Vietnam is highly dependent on exports to the U.S. In the worst-case scenario, Vietnam's gross domestic product this year could be pressured by up to three percent.

Referring to data from Vietnam's National Statistics Office, in the first quarter of 2025, Vietnam's GDP grew by 6.93 percent year-on-year. This achievement slowed compared to Vietnam's GDP in the fourth quarter of 2024, which was 7.55 percent.

Last Friday, following U.S. President Donald Trump's announcement of new import tariffs, Secretary General of the Communist Party of Vietnam, To Lam, offered to reduce import tariffs on U.S.-origin products. Trump warmly welcomed the offer, which was conveyed during a phone conversation.

On the other hand, referring to Vietnam News, To Lam also requested the United States to remove tariffs on Vietnamese products. Additionally, To Lam invited President Trump and the First Lady to visit Vietnam soon. The phone conversation between Trump and To Lam took place two days after the United States imposed a 46 percent tariff on Vietnam.

Accompanying To Lam during his talks with President Trump were Prime Minister Pham Min Chih, Chairman of the Central Committee of the Communist Party of Vietnam Le Hoai Trung, and Deputy Prime Minister Ho Duc Phoc.

Before the US tariffs were imposed on Wednesday, Vietnam had already cut taxes on some US products as a concession. It also promised to buy more US products such as aircraft and agricultural products.

Vietnam has been trying to maintain balance in its foreign relations with the world's two major powers, the US and China. Vietnam is an ASEAN country with direct trade access to China's Guangxi Province, which is China's gateway to ASEAN.

Despite the current pressure, PM Pham Minh Chinh said Trump's tariffs would not change Vietnam's 2025 growth target of 8 percent.

In order to achieve this year's growth target, Vietnam's economic performance must reach the range of 8.2 percent to 8.4 in the remaining eight months. However, if Trump's tariffs result in a 10 percent decline in Vietnam's exports, it could cut 0.84 percent of Vietnam's GDP this year, making it difficult to achieve the target.

Vietnam's hardest-hit industrial sectors are footwear, fashion, electronics and smartphones.

"Exports to the US are the main driver of Vietnam's economy. However, the high tariffs will reduce investment into Vietnam, especially from US, South Korean and Chinese investors. That will result in lower employment opportunities and people's incomes," said a senior official from the Office of the Foreign Minister.

The US was Vietnam's largest export market in the first quarter of 2025 and Vietnam's trade surplus with the US rose 22.1 percent from a year earlier to US$27.3 billion.

However, if not vigilant, industrial performance in the second quarter will face challenges due to the implementation of US tariffs and global uncertainty.

Vietnam's economic activity usually slows down at the beginning of the year due to the lull in activity during the Lunar New Year or Tet holiday. On the other hand, with the latest developments, business consultants in Vietnam said, growth in 2025 will be affected because companies will delay investment to adjust to US tariffs.

Previously, a survey of US companies in Vietnam in February 2025 also revealed that most employers planned to lay off employees if their performance declined due to the new tariffs imposed by Trump.

(AFP/Reuters)