NEW U.S. EXECUTIVE ORDER AND ITS IMPACT ON VIETNAM

On February 13, President of USA's Donald Trump signed a new executive order on tariffs, marking a decisive step in reshaping U.S. trade policy. This order aims to increase import tariffs on trade partners with significant trade surpluses with the U.S., including Vietnam.

The "Reciprocal Trade and Tariff Order" issued by President Trump introduces several key aspects. The U.S. government will conduct a review of over 17,000 imported product codes to adjust tariff rates for each country and product, ensuring that the tariffs imposed by the U.S. reflect parity with the tariffs these countries apply to American goods. A notable point in the executive order is its emphasis on the principle of reciprocal tariffs—if a country imposes high duties on U.S. goods while benefiting from lower tariffs when exporting to the U.S., Washington will raise tariffs to restore balance.

Among the countries with substantial trade surpluses with the U.S., Vietnam is significantly affected, ranking just behind China and Mexico. The trade surplus between Vietnam and the U.S. reached $105 billion in 2023, making Vietnam one of the largest exporters to the American market

The new U.S. tariffs could pose considerable challenges for Vietnamese businesses. Higher export costs may reduce the competitiveness of Vietnamese goods in the U.S. market. Additionally, there is a growing risk of anti-circumvention investigations, as the U.S. has previously accused certain foreign enterprises of using Vietnam as a transshipment point for Chinese goods to evade tariffs.

President Trump’s reciprocal tariff policy could significantly reshape the global trade landscape. For Vietnam, it presents a major challenge but also an opportunity to adjust trade and investment strategies in response to U.S. policy shifts. Proactively negotiating, strengthening domestic industries, and diversifying export markets will be crucial solutions for Vietnam to protect its trade interests and sustain long-term economic growth.

Source: https://vnbusiness.vn/the-gioi/tong-thong-trump-ky-sac-thue-co-di-co-lai-va-tac-dong-doi-voi-viet-nam-1104971.html