Vietnam's proposal to reduce import tariffs on U.S. goods will present a chance for local consumers to reach a wide range of high-quality products at more affordable prices while promoting a sustainable bilateral trade balance, according to economic experts.

Last Friday, Vietnamese Party General Secretary To Lam held a phone conversation with President Donald Trump, expressing Vietnam's readiness to eliminate import duties on American goods and to encourage businesses to import American goods. 

This initiative responds to the U.S.'s imposition of a 46-percent reciprocal tariff on Vietnamese imports as part of a global reciprocity strategy.

On April 3, the U.S. administration announced a 10-percent base tariff on imports from all countries, effective April 5. Additionally, higher tariffs were imposed on nations with the largest trade deficits with the U.S., including Vietnam, with these increased rates taking effect on April 9. 

The Vietnamese government has requested a delay in the U.S. tariff implementation for one to three months to allow time for negotiating mutually beneficial solutions.​

Experts suggest that Vietnam's tariff reductions could prompt the U.S. to reassess its duties, fostering a more balanced trade relationship. 

Mac Quoc Anh of the Hanoi Small and Medium-sized Enterprises (SME) Association noted that the constructive dialogue between the two leaders lays a foundation for upcoming negotiations, alleviating business concerns and boosting investor confidence.​

Vietnam is home to approximately 10,000 SMEs in sectors like agriculture, handicrafts, and textiles, with 65 percent engaged in U.S.-related exports. For companies deriving 30–70 percent of their revenue from U.S. trade, staying abreast of policy shifts is crucial.​

Nguyen Thi Xuan Thuy, a lecturer at the University of Economics and Business under Vietnam National University-Hanoi, observed that lowering tariffs on U.S. goods – currently averaging 9.4 percent – would have a minimal impact on Vietnam’s tax revenue. 

In 2024, Vietnam imported US$13 billion in U.S. goods, one-third of which were electronics, with other major imports including plastics, food residues, and cotton. These imports constitute just four percent of Vietnam’s over $300 billion total imports, much of which supports domestic production.

Therefore, lower tariffs could reduce input costs for Vietnamese manufacturers, Thuy stated.​

Presently, high tariffs restrict the availability of U.S. products like electronics, cars, pharmaceuticals, and chemicals in Vietnam. Reducing these barriers would provide consumers with greater access to high-quality goods, such as iPhones and American cars, at more competitive prices.​

Conversely, the 46-percent reciprocal tariff poses a threat to Vietnam’s exports and economic goals.​

Le Quoc Phuong, former deputy director at the Trade and Industry Information Center under the Ministry of Industry and Trade, views tariff reduction as a step toward alleviating Vietnam’s trade surplus with the U.S. and facilitating trade negotiations.

Although tariff cuts may slightly reduce government revenue and affect certain local industries, they could also lower raw material costs and benefit consumers with more affordable products.​

Given the largely complementary nature of the Vietnamese and U.S. economies, with limited direct competition, Vietnamese consumers stand to gain broader access to high-quality imports. Strategic tariff reductions may also delay or prevent U.S. retaliatory tariffs and support Vietnam’s export-driven economy, which heavily relies on the U.S. market.​

Nguyen Ngoc Dat, CEO of Di Dong Viet Technology Company Limited, remarked that reducing tariffs would have a minimal effect on prices of mainstream U.S. tech brands like Apple and Dell, as they are primarily manufactured outside the U.S..

However, it would benefit niche products such as Cisco equipment, Intel processors, and automation machinery, improving access and reducing costs for Vietnamese businesses. This change could accelerate digital transformation and attract U.S. investment to Vietnam.​

Pham Van Viet of the Ho Chi Minh City Textile Association advised that Vietnam should diversify export markets and stimulate domestic consumption to counteract U.S. tariffs, though such efforts require time.​

Francis Lee, Vietnam representative for the California Table Grape Commission, noted that lowering import tariffs would enhance opportunities for U.S. products like dairy, nuts, fresh fruits, hardwood, and grains in Vietnam.

He said he is representing many associations in the U.S. agriculture sector, covering grapes, apples, and cherries, all of which wish to boost marketing efforts in Vietnamese supermarkets and urban areas to meet growing demand.​

Amid the optimism of Vietnamese businesses that forthcoming negotiations will result in tariff reductions, thereby enhancing sustainable trade with the U.S., James Meisenheimer, consulting manager at Thailand-based Tractus Asia, emphasized Vietnam's consistent willingness to engage with President Trump's administration. Meisenheimer highlighted the recent phone call between Party General Secretary To Lam and President Trump as a positive development, expressing hope for constructive negotiations for a balanced trade relationship.

The expert emphasized that higher tariffs adversely affect Vietnam, U.S. consumers, and the global supply chain. Increased costs for products like smartphones, clothing, and footwear -- areas where Vietnam excels as a supplier -- would impact American consumers' budget and purchasing power.​

On April 4, leaders of the American Chamber of Commerce in Vietnam (AmCham Vietnam) met with Deputy Prime Minister Ho Duc Phoc ahead of his working visit to the U.S., which is expected to contribute to addressing the reciprocal tariff. AmCham Vietnam supports reducing U.S. import tariffs to zero percent to benefit both economies. 

Meanwhile, the Vietnam Association of Seafood Exporters and Producers (VASEP) proposes negotiating specific seafood product tariffs instead of a blanket 46-percent rate.

VASEP advocates for reducing U.S. seafood import tariffs to zero percent, particularly on shrimp and tuna, to facilitate negotiations and safeguard mutual interests, compared to current tariffs of 3-10 percent.

Hong Sun, former chairman of the Korean Business Association in Vietnam, expressed concerns that new U.S. tariffs could adversely affect Vietnam's export-dependent economy and significant South Korean investments.

He hopes for positive outcomes from ongoing Vietnam-U.S. negotiations.

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