As President Donald Trump gears up for his second term, he is making significant adjustments to his tariff strategy, expanding the range of countries subjected to new import taxes. This renewed plan, unveiled on March 21, 2025, includes a variety of economic powers within the G-20, highlighting a growing focus on nations that maintain considerable trade surpluses with the United States. Among those targeted is Vietnam, a country that has seen substantial trade growth with the U.S., particularly in textiles, electronics, and furniture.
Historically, during his first term from 2017 to 2021, Trump utilized tariffs as a strategic maneuver to pressure China and other major trading partners. He imposed duties on approximately $350 billion worth of goods and raised steel and aluminum tariffs significantly, citing national security under the Trade Expansion Act. However, last week’s proposal indicates a shift; instead of a broad-brush approach, there will be a more targeted application of tariffs aimed at specific sectors and countries that Trump identifies as detrimental to the U.S. trade balance.
Trump described April 2, 2025, as the “day of liberation” for the U.S. economy, a moment when he intends to implement measures intended to create fairer trade practices. He asserted, “People are coming to me and talking about tariffs, and a lot of people are asking if they can have exemptions. Once you do it for one country, you have to do it for everyone.” This demonstrates Trump’s commitment to a protectionist trade stance while expressing some readiness to amend conditions to mitigate adverse impacts on the U.S. economy and key allies.
These changes in the tariff plan are perceived as potentially alleviating market concerns about a full-blown trade war, particularly between the U.S. and its allies in Europe and Canada, who fear further escalation of tariffs on their products. Trump’s administration suggests that the new measures may not be as disruptive as initially expected. However, the implications for countries like Vietnam remain significant. With a trade surplus exceeding $123 billion in 2024, Vietnam is at risk of being caught in Trump’s crosshairs as the U.S. intensifies scrutiny over its trade practices.
Vietnam has been identified as one of the top exporters to the U.S. market in clothing, electronics, and furniture. The surge in exports could prompt the U.S. to enforce stringent trade measures. Experts caution that sectors critical to Vietnam's economy could face adverse impacts, leading Vietnamese businesses to reconsider their market strategies. “The list of countries facing tariffs under Trump's new plan includes major economies in the G-20, as well as India, Japan, China, and Vietnam,” reports Bloomberg.
The repercussions of the tariff changes could provoke Vietnam to diversify its export markets, enhance trade negotiations with other partners, and bolster domestic production to mitigate reliance on the U.S. market. Despite Trump's assurances that his measures would maintain flexibility, the uncertainty presents challenges for Vietnam's trade outlook.
In February 2025, the U.S. escalated pressure on China by imposing a 10% tax on all imports and raising tariffs on steel and aluminum to 25%. These initiatives exemplify a renewed focus on reducing the trade deficit, especially among countries with significant surpluses vis-à-vis the United States.
Vietnam’s response should also incorporate strategic moves like increasing imports from the U.S. to balance trade metrics. By multiplying imports of U.S. agricultural products such as soybeans and meat, Vietnam stands to alleviate some of the pressure exerted by Trump’s administration. Collaborating in sectors like liquefied natural gas (LNG) can also foster long-term energy security for Vietnam in the face of changing trade dynamics.
Moreover, ongoing concerns about potential misuse of Vietnamese export channels — where goods originally from China might be rerouted — have raised the stakes for Vietnam's compliance with U.S. trade regulations. Maintaining transparency in customs practices, demonstrating the genuine origins of exports, and thwarting potential fraud are critical actions Vietnam can undertake to safeguard its export interests.
In the forthcoming interactions with the U.S., there’s a need for Vietnam to position itself as an essential player in the global supply chain, especially as multinational corporations redirect their manufacturing bases from China. Companies like Apple and Samsung are expanding operations in Vietnam, providing a vital opportunity for the country to elevate its manufacturing capabilities and create jobs.
Finally, Vietnam must actively pursue diplomatic negotiations with the Trump administration to avoid punitive tariffs. By establishing comprehensive economic cooperation frameworks — similar to arrangements historically signed by Japan during the 1980s — Vietnam may secure its position and restore a more favorable trading environment.
As the dialogue continues between the two nations, Vietnam must remain tactical and prepared to face the shifting landscape of international trade. By proactively addressing potential trade barriers, Vietnam can enhance its economic stability and growth, transforming challenges posed by the U.S. tariffs into opportunities for greater development.
