Trade surplus with the US : Vietnam face US tariff barrier
After many years of a large trade surplus with the United States (more than 114 billion USD for 2022), in President Trump’s new term, Vietnamese goods are likely to be subject to additional taxes to rebalance this difference. Vietnam is currently the fourth largest surplus country in the world after China, the European Union and Mexico. The US Department of Commerce said the deficit with Vietnam reached 102 billion USD in the first 10 months of 2024. The US plans to impose a 20% tax on Vietnamese goods exported to the US.
After the US continues to not recognize Vietnam’s market economy status, this is bad news for major companies with factories manufacturing products in Vietnam such as Samsung, Nike, Apple. Mr. Peter Navarro is appointed as senior advisor on trade and production. The imposition of tariffs is part of the general policy of the United States, aiming to increase the scale of domestic manufacturing, and bring the global supply chain back to the United States. Currently, the United States accounts for more than 1/3 of Vietnam’s total exports (313 billion USD/11 months of 2024).
In response to accusations from US manufacturing industry associations, Vietnam needs to more strictly control the origin of goods and components to avoid Chinese goods labeled as made in Vietnam exported to the United States, to avoid tariff barriers on Chinese goods. In order to rebalance, Vietnam can reduce its large trade surplus with the United States by increasing imports from the United States, including oil, aircraft, medicines, telecommunications services, etc.
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