AmCham Vietnam proposes U.S. postpone reciprocal tariffs on Vietnam

The administration of U.S. President Donald Trump announced on April 2  (local time) reciprocal tariffs on goods to be imported to the US from more than 180 trade partners, including Vietnam, on which a tariff rate of 46 per cent will be imposed.

On April 4, the American Chamber of Commerce in Vietnam (AmCham Vietnam) has given its opinion on the multi-dimensional impacts of the US's new tariff policy on Vietnamese exports, as well as on the overall trade relationship between the two countries.

According to AmCham Vietnam, the size and immediacy of the 46 per cent reciprocal tariffs are wholly inconsistent with these goals.

The suddenness of their implementation and the substantial scale of the tariffs has created significant uncertainty and potential disruption for businesses operating in Vietnam,  Amcham noted.

While AmCham acknowledges the need to address the growing trade deficit between the two nations, it strongly urges the US administration to consider implementing a grace period. Such a period would allow businesses on both sides to adapt to the new regulations, mitigating unnecessary disruption and financial harm.

Currently, the immediate implementation negates the opportunity for businesses to adjust to the new conditions, as commercial decisions have already been made based on prior trade agreements, AmCham remarked.

It believes that the U.S. and Vietnam are aligned on the fact that the growth in the trade deficit is simply not sustainable. 

The U.S. is the largest export market for Vietnamese goods, yet it is also assessed some of the highest duties of Vietnam’s leading trading partners, AmCham noted.

AmCham is hopeful that both countries can quickly reach an agreement on appropriate tariffs to continue the trade relationship that has benefited all participants.

Ultimately, AmCham members require certainty and stability to operate effectively. "We ask both governments to expedite negotiations aimed at reducing these duties to the lowest possible levels," said Mr. Mark Gillin, Chairman of AmCham Vietnam. "In this spirit, AmCham stands ready to provide constructive input and facilitate dialogue between the U.S. and Vietnamese governments to improve the trade relationship."