Trump’s 46% Tariff on Vietnam: Why VNO’s U.S. Clients Can Stay Confident
Table of Contents
1. Setting the Record Straight: Vietnam Does Not Impose a 90% Tax on U.S. Goods
On April 2, 2025, former President Donald Trump announced a proposed 46% tariff on Vietnamese imports, citing “unfair trade practices” and claiming that Vietnam imposes a 90% tax on American goods.
This claim, however, is a significant distortion of reality.
In truth, Vietnam’s average tariff on U.S. goods ranges from 10% to 20%, with a few specific items (e.g., automobiles, alcoholic beverages) facing higher duties. Most U.S. products—especially tech equipment, electronics, and industrial machinery—are already traded under preferential rates thanks to the U.S.–Vietnam Bilateral Trade Agreement and Vietnam’s WTO commitments.
Trump’s figure likely reflects a few high-tariff items, not the broader trade landscape. In short, the 90% number is misleading, and the proposed 46% “reciprocal” tariff is not based on actual trade data.
2. VNO’s Core Products Are Not Affected by the Tariff
According to the official White House Fact Sheet (April 2025), the new tariffs will not apply to the following product categories:
Articles already subject to Section 232 (e.g., steel and aluminum)
Autos and auto parts
Copper, semiconductors, pharmaceuticals, lumber
Energy and rare minerals
Strategic materials procured under defense or emergency supply programs
This means that the majority of VNO’s products—aluminum profiles, precision metal components, and sheet metal fabrications—are excluded from the 46% tariff.
For our U.S. clients, this ensures business continuity without major cost increases or delivery disruptions.
This exclusion is further supported by Title 19 — Customs Duties, specifically 19 CFR §10.102, which grants duty-free entry to:
Articles procured by U.S. military departments under emergency conditions, subheading 9808.00.30, HTSUS
Strategic and critical materials procured under the Strategic and Critical Materials Stockpiling Act, subheading 9808.00.40, HTSUS
(Source: 19 CFR 10.102 (as of March 14, 2025))
📌 Given that VNO’s products primarily fall under steel, aluminum, and mechanical components used in industrial and infrastructure applications, we are largely shielded from this new tariff regime.
📌 Moreover, VNO has previously served clients operating within U.S. government supply chains. In cases where procurement involves materials considered strategic or related to national interest, duty-free importation may apply under existing federal codes.
3. Vietnam’s Strategic Partnership with the U.S. Matters
Vietnam and the U.S. upgraded their relationship to a Comprehensive Strategic Partnership in 2023, deepening economic, political, and security cooperation. Vietnam has demonstrated goodwill toward the U.S. through:
Massive orders of Boeing aircraft and U.S. agricultural goods
Welcoming major U.S. tech investors like Apple, Intel, and Qualcomm
Adjusting currency practices and increasing transparency in response to previous concerns
Combating trade fraud by enforcing rules of origin and tightening customs controls
Vietnam is not China. It has shown flexibility and openness in negotiations. This geopolitical context gives VNO confidence that the current tariff situation can be de-escalated through diplomatic and economic dialogue.
4. VNO’s Proactive Response for U.S. Clients
We understand that uncertainty in global trade creates stress for procurement managers, engineers, and sourcing directors. That’s why VNO is already taking steps to stay ahead:
Product classification audit: Ensuring all HS codes and tariff declarations are compliant with U.S. regulations
Logistics alignment: Working with shipping and customs partners to mitigate risks
Client transparency: Regular updates to clients about policy changes and possible implications
Scenario planning: Preparing for different outcomes, including slight adjustments in sourcing and final assembly (if required)
Our U.S. clients can continue placing orders with confidence, knowing that we are actively safeguarding their interests.
5. Looking Ahead: Why We’re Optimistic
Recent trade developments in North America provide valuable lessons. Mexico and Canada, previously subject to strict U.S. tariffs, have seen those lifted after diplomatic negotiation.
Given Vietnam’s growing strategic importance in U.S. supply chains—and its demonstrated record of cooperation—we believe the current policy stance can shift toward resolution.
VNO remains committed to long-term collaboration, quality manufacturing, and transparent communication.
Message to Our U.S. Clients
We know the headlines sound alarming. But here’s the truth:
📌 Your VNO products—aluminum profiles, fabricated components, mechanical parts—are not subject to the new 46% tariff.
📌 We are monitoring policy shifts daily and will keep you informed.
📌 We remain your trusted partner—committed to cost efficiency, delivery reliability, and compliance.
You might also want to read:
Maximizing Value in Your Supply Chain: How to Identify the Right Vietnamese Metal Manufacturer
Supply Chain Resilience: Why Sourcing from Vietnam Makes Sense in the Current Trade Landscape
