Record 46% Tariff Pushes Vietnamese Exports into a Difficult Position in the U.S. Market
U.S. Announces Over 10% Tariffs on Imports from Dozens of Countries
The Trump administration officially announced a new tariff policy, increasing import duties by more than 10% on goods from numerous countries worldwide. This announcement, made at the White House Rose Garden in early April 2025, has escalated global trade tensions.
The base tariff is set at 10%, applied to most countries including the UK, Brazil, Singapore, Australia, Chile, Argentina, and Saudi Arabia. However, some economies face significantly higher retaliatory tariffs based on the duties they impose on U.S. goods. The European Union (EU) faces tariffs ranging from 20% to 26%. Notably, China and Vietnam are among those with the highest tariffs at 34% and 46%, respectively.
President Trump justified this policy by arguing that other countries impose unfair tariffs on U.S. goods, causing trade imbalances. He cited tariff rates imposed by Vietnam, China, and the EU on U.S. products at 90%, 67%, and 39%, respectively.
The tariff policy is implemented in two phases: a 10% tariff effective from April 5, and higher tariffs, such as those for Vietnam and China, starting April 9. Essential items like copper, pharmaceuticals, semiconductors, lumber, gold, energy, and certain minerals unavailable in the U.S. are exempted.
International Reactions
The U.S. tariff policy has met diverse responses globally, with many countries expressing concern over its negative impact on the global economy.
United Kingdom: Despite facing only a 10% tariff, the UK seeks negotiations with the U.S. to minimize damage. The UK’s Secretary of State for Business and Trade affirmed ongoing efforts to build economic agreements with Washington.
European Union: EU officials strongly criticized the U.S. decision. Italian Prime Minister Giorgia Meloni called it a mistake and warned of a trade war that could weaken the West.
Australia: Australian Prime Minister Anthony Albanese condemned the tariffs as baseless and unallied behavior but stated Australia would not impose retaliatory tariffs.
Other Countries: Many others voiced concerns and called for dialogue to resolve trade disputes.
Impact on the U.S. Economy and International Trade
The Trump administration expects the tariff policy to boost domestic production, reduce trade deficits, and stimulate the U.S. economy. However, many economists remain pessimistic, warning that tariffs will disrupt global supply chains, forcing U.S. companies to raise prices or accept lower profits. This could lead to inflation, reduced purchasing power, and slower economic growth.
On the international front, the new U.S. tariffs are forecasted to increase tensions and instability. Experts warn of a potential global economic downturn if countries fail to reach consensus on trade issues. Moreover, tariffs complicate negotiations and signing of free trade agreements, hindering global economic integration.
The record 46% U.S. tariff, while a major challenge, also opens a door for transformation in Vietnam’s aluminum and steel industries. It is a critical time for businesses to restructure, enhance competitiveness, diversify markets, and assert their position on the global trade map.
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