Strategic Recommendations for Vietnam in Responding to U.S. Reciprocal Tariffs

Key Chapter Title List

1. Key Points of U.S. Reciprocal Tariff Implementation
2. Affected Vietnamese Industries
3. Strategic Recommendations for Vietnamese Exporters: Trade Diversification
4. Strategic Recommendations for Vietnamese Exporters: Diplomatic Efforts
5. Strategic Recommendations for Vietnamese Exporters: Supply Chain Considerations
6. Strategic Recommendations for Vietnamese Exporters: Market Adaptation
7. Strategic Recommendations for Vietnamese Exporters: Adopting a Wait-and-See Approach
8. Initial Response and Negotiation Strategy of the Vietnamese Government
9. Disclaimer and Contact Information

Document Introduction

This report is based on a thematic news brief released by PwC Vietnam. It provides a timely and professional compilation and preliminary assessment of the significant trade policy change announced by the U.S. government in early April 2025 regarding the implementation of reciprocal tariffs on imported goods. The core focus of the report is to analyze the specific impact of this policy, which aims to reduce the substantial U.S. merchandise trade deficit, on Vietnam as a major U.S. trade partner, and to provide an initial strategic framework for relevant stakeholders.

The report first details the key implementation specifics of the U.S. reciprocal tariff policy. The policy stipulates that, effective April 5th, a 10% reciprocal tariff will be imposed on all goods imported into the U.S. (including those from Vietnam); and from April 9th onwards, the rate for Vietnam will be significantly increased to 46%. This tariff is levied additionally on top of all existing taxes and duties, and has a broad scope of application. Only certain goods listed in Appendix II, such as specific chemicals, minerals, wood products, copper, zinc, ferroalloys, semiconductors, pharmaceuticals, and energy products, are exempted. This phased, high-rate arrangement presents a direct and urgent challenge to Vietnam's exports to the United States.

Based on export dependency analysis, the report identifies the industrial sectors within Vietnam most vulnerable to impact. These highly exposed industries primarily include: aquatic products, apparel and textiles, computers, electronics and components, footwear, furniture, machinery, equipment and parts, mobile phones and accessories, plastic products, and steel (excluding ferroalloys). These industries form the backbone of Vietnam's exports to the U.S., and their stability is directly linked to Vietnam's foreign trade revenue and employment market.

To address the challenges, the report proposes five core strategic recommendations for Vietnamese exporters. First, promote trade diversification to reduce dependence on the U.S. market, leveraging existing frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) to explore other markets. Second, strengthen diplomatic efforts, collaborating with the Vietnamese government to actively negotiate with U.S. trade representatives and participate in international forums to seek more favorable trade terms. Third, review the supply chain to explore using free trade agreements to find new sources of raw material supply to reduce costs. Fourth, undertake market adaptation by enhancing product quality and uniqueness to increase intrinsic value and competitiveness. Fifth, considering international opinion suggesting potential variability in this policy, it is recommended that some enterprises adopt a prudent wait-and-see approach.

The report also documents the initial response of the Vietnamese government. Following the policy announcement, the Vietnamese government promptly initiated consultations with the U.S., expressing a willingness to reduce tariffs on U.S. imported goods to zero on one hand, while requesting the U.S. to delay the implementation of reciprocal tariffs on its exports for at least 45 days on the other. This move is seen as part of Vietnam's strategy to seek a bilateral agreement, achieve sustainable trade balance, and uphold its international commitments.

The content of this brief is intended to provide general guidance and is not professional advice. Its value lies in offering defense and international relations researchers, policy analysts, and geopolitical observers a timely and precise micro-case study. It serves to examine the crisis response patterns, domestic interest coordination mechanisms, and the initial formation of bilateral negotiation strategies of a middle power when facing unilateral trade measures from a major trade partner. Subsequent developments require further tracking.