​Vietnam's exports to face challenges over US tariff hike: deputy minister

​Vietnam's exports to face challenges over US tariff hike: deputy minister

Washington’s imposition of a 46-percent reciprocal tariff on Vietnamese goods will have adverse effects on Vietnam's exports, Truong Thanh Hoai, Deputy Minister of Industry and Trade, told a press briefing on Sunday.

Truong Thanh Hoai, Deputy Minister of Industry and Trade, speaks at a press briefing on April 6, 2025. Photo: Danh Khang / Tuoi Tre

“Exports will face numerous hurdles in the near future,” he stated.

The electronics, textile, and footwear sectors are expected to be the hardest hit.

“With the spike in tariffs, the prices of goods exported to the U.S. will rise, making Vietnamese products less competitive," he explained.

“Additionally, American consumer purchasing power is expected to decrease, further exacerbating the situation."

For existing contracts, the deputy minister noted that American companies would reassess whether they would continue their purchases.

However, as for new contracts, he expressed concern that the situation would become even more difficult.

The steep 46-percent tariff is scheduled to come into effect on April 9, but the Vietnamese government has taken proactive steps to engage with the U.S. government in the hope of reaching a mutually beneficial solution, he stressed.

Vietnamese Party General Secretary To Lam on Friday last week held phone talks with U.S. President Donald Trump to discuss the Vietnam-U.S. relations, during which the Party chief emphasized Vietnam’s willingness to negotiate a zero-percent import tariff on goods from the U.S..

He also called on the U.S. to apply similar measures to Vietnamese exports and to continue importing goods aligned with Vietnam’s needs, in order to strengthen bilateral cooperation for the mutual benefit of both nations.

Meanwhile, Prime Minister Pham Minh Chinh has established a task force to closely monitor and respond to Washington's evolving economic and trade policies.

Deputy Minister Hoai hinted at making the most of free trade agreements, diversifying market strategies, and enhancing domestic production capabilities to mitigate the effects of the newly imposed tariffs.

At the beginning of the press conference, Minister-Chairman of Government Office Tran Van Son addressed the U.S. tariff issue.

He pointed out that Vietnam had taken early and proactive measures to reduce taxes, import goods, and address the legitimate concerns of American businesses.

Several ministries have also engaged in diplomatic discussions with the U.S. side, using all available political and diplomatic channels.

Minister Son further noted that the United States' tariff policies would present a considerable challenge to Vietnam in the coming months.

However, the prime minister emphasized during a meeting on Sunday that Vietnam would not deviate from its goal of achieving an eight-percent GDP growth rate for 2025, despite these setbacks.

The government leader underlined that Vietnam must maintain its composure, focusing on creative, proactive solutions to adapt to external shocks.

Vietnam is among the countries facing steep reciprocal tariffs from the United States, with a 46-percent rate, among the highest announced by President Donald Trump during a White House Rose Garden ceremony on Wednesday last week (U.S. time).

A base 10-percent tariff was applied to imports from all nations beginning April 5, while the higher, country-specific retaliatory tariffs will take effect on April 9.

Vietnam and China were placed in the highest tariff bracket, with rates of 46 percent and 34 percent, respectively.

Cambodia faces a 49-percent rate, Laos 48 percent, Madagascar 47 percent, and more.

Tuoi Tre News