Setting the Record Straight on the Trump Tariff

On April 2, 2025, former President Donald Trump proposed a 46% tariff on Vietnamese imports, citing so-called “unfair trade practices.” He also argued that Vietnam imposes a 90% tax on American goods.

This claim does not reflect reality. In fact, Vietnam’s average tariff on U.S. products ranges from 10% to 20%, and only a few categories—such as automobiles and alcoholic beverages—face higher duties. By contrast, most U.S. exports, including technology equipment, electronics, and industrial machinery, benefit from preferential rates under the U.S.–Vietnam Bilateral Trade Agreement and Vietnam’s WTO commitments.

Therefore, the “90% tax” figure represents a handful of high-duty items, not the broader trade environment. Trump’s tariff proposal is political rhetoric rather than data-driven policy.

Why VNO’s Core Products Remain Exempt

According to the White House Fact Sheet (April 2025), the proposed tariff does not cover several key categories, including:

• Articles already subject to Section 232 (steel and aluminum)

• Autos and auto parts

• Copper, semiconductors, pharmaceuticals, lumber

• Energy and rare minerals

• Strategic materials under defense or emergency supply programs

This exemption matters. VNO’s core offerings—aluminum profiles, sheet metal fabrications, and precision-machined components—fall outside the scope of the 46% tariff. For U.S. clients, that means no sudden cost spikes, no shipment delays, and no disruption in supply continuity. Consequently, we are still witnessing Companies to Shift from China to Vietnam as a trend.

Legal protections further support this. Under Title 19 — Customs Duties, 19 CFR §10.102, U.S. law allows duty-free entry for:

• Articles procured by U.S. military departments in emergencies (HTSUS 9808.00.30)

• Strategic materials covered by the Critical Materials Stockpiling Act (HTSUS 9808.00.40)

📌 Because many of VNO’s products serve industrial and defense applications, they remain largely shielded from Trump’s tariff proposal.

Vietnam’s Strategic Partnership with the U.S.

Vietnam and the U.S. upgraded their relationship to a Comprehensive Strategic Partnership in 2023, strengthening economic and security cooperation. Vietnam has consistently shown goodwill through:

• Large purchases of U.S. aircraft and agricultural goods

• Hosting major U.S. tech investors such as Apple, Intel, and Qualcomm

• Adjusting currency policies in response to U.S. concerns

• Enforcing rules of origin to prevent trade fraud

Unlike China, Vietnam has demonstrated flexibility and constructive engagement. This geopolitical context suggests that the Trump tariff is more likely a temporary bargaining tactic than a long-term barrier.

VNO’s Proactive Measures for U.S. Clients

We recognize that uncertainty in global trade creates pressure for procurement managers and sourcing directors. That’s why VNO has already launched several initiatives:

• Product classification audit: Ensuring HS codes and tariff declarations are accurate.

• Logistics alignment: Partnering with shipping and customs experts to minimize risks.

• Client transparency: Providing regular updates on policy changes and their impact.

• Scenario planning: Preparing contingency strategies, including alternate sourcing routes.

Through these steps, VNO guarantees that U.S. clients can continue placing orders with confidence.

Looking Ahead: Why Optimism Prevails

Recent history shows that U.S. tariffs on partners like Mexico and Canada were eventually lifted following negotiations. With Vietnam’s growing role in U.S. supply chains, it is reasonable to expect the Trump tariff to be reassessed in future discussions.

VNO remains optimistic. We are committed to manufacturing excellence, transparent communication, and long-term collaboration with U.S. partners. More insight can be found at Compliance & Supply Chain in Vietnam.

Message to Our U.S. Clients

We know the headlines surrounding the Trump tariff sound alarming. However, here are the facts:

📌 VNO products—including aluminum profiles, fabricated components, and precision parts—are excluded from the 46% tariff.
📌 We actively monitor trade policy shifts and provide real-time updates.
📌 We remain your trusted Vietnam manufacturing partner, committed to cost efficiency, delivery reliability, and compliance.