Vietnamese seafood exporters voice concerns over 46% US tariff

Vietnam is among the countries facing steep retaliatory tariffs from the United States, with a 46-percent rate, among the highest announced by President Donald Trump during a White House Rose Garden ceremony on Wednesday last week (U.S. time).

Truong Huu Thong, chairman of T&T Co., Ltd., a leading exporter of shrimp and tilapia based in Binh Thuan Province, south-central Vietnam, stated that with the steep tariff, his company would no longer be able to continue exporting seafood to the U.S..

He emphasized that the U.S. plays a dominant role in determining the trade value of the industry, especially compared to markets like Europe and Japan, which set their prices based on what the U.S. pays for the products.

Nguyen Van Trien, director of Tan Phat Foods Corporation, which has factories in Phu Yen and Long An Provinces, and specializes in tuna exports to the U.S., lamented that if the 46-percent tariff is applied, his company's products would not be able to compete with those from other markets.

He stressed that customers would inevitably shift to buying products from the markets on which 10-30 percent tariffs are imposed, effectively abandoning Vietnamese products.

"The U.S. tariff will greatly affect the company's supply chain," Trien added.

"If my firm's tuna cannot be exported to the U.S., local fishermen will have no buyers for their catch."

Thong said that if the U.S. imposes the 46-percent tariff, his company will temporarily halt seafood shipments to the market and focus on other emerging markets such as Europe, Japan, South Korea, Canada, and Australia.

Similarly, Trien noted that if the steep tariff remains, his company would have no choice but to seek markets with more favorable tariffs, such as Europe, Japan, and South Korea.

Calls for tariff reduction

Vu Dinh Dap, president of the Vietnam Tuna Association, explained that the reason for the 46-percent tariff is Vietnam's significant trade surplus with the U.S. in recent years.

He clarified that the tariff is a general rate applied to all Vietnamese exports, not just seafood, and businesses are still uncertain about how much tariff will be applied to each specific seafood product.

He advised seafood exporters to remain calm and trust in the negotiations between the two governments.

"Enterprises should stay patient and look forward to the Vietnamese government's response to the U.S. tariff, while also exploring other potential markets," he suggested.

Le Hang, vice-secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), revealed that VASEP had already sent a petition to the prime minister and relevant ministries regarding the U.S. tariff.

She underlined that the U.S. is a key, traditional market for global seafood and for Vietnam.

VASEP pointed out that for example, a shipment of shrimp worth US$500,000, which used to incur a five-percent tariff, equating to $25,000, would now be subject to a 46-percent tariff, or $230,000, an increase of $205,000.

The association has called on both governments to negotiate a reduction of the 46-percent tariff and to apply separate tariffs for different categories of seafood exports to the U.S..

In addition, VASEP suggested that the Vietnamese government take proactive measures to reduce the import tariff on U.S. seafood to zero percent.