U.S. President Donald Trump said he will levy a 46% duty on imports from Vietnam as part of a new wave of global impositions announced Wednesday, while it is 34% for China.

The tariff on Vietnam will come into force on April 9.

The tax imposition for Vietnam is among the highest, only after Laos (48%) and Madagasca (47%).

It is higher than many others like Sri Lanka and Myanmar (44%), Bangladesh (37%), Thailand (36%), mainland China (34%), Taiwan (32%), India (26%), South Korea (25%), Japan and Malaysia (24%), the EU (20%), and the Philippines (17%).

For years, Vietnam has become a popular alternative for companies trying to avoid the U.S. trade tensions with China which exported more to the U.S. than any other country for decades.

Vietnam was Nike’s biggest manufacturer for the second fiscal year running, according to the American athletic footwear and apparel corporation’s report for fiscal year 2024 ending May.

Nike’s contract manufacturers operated 96 finished goods footwear factories in 11 countries. Vietnam accounted for 50% of total Nike brand footwear, followed by China and Indonesia with 27% and 18%, respectively.

The U.S.'s imports from Vietnam grew to $136.6 billion in 2024, up about 19% from 2023, according to the Office of the U.S. Trade Representative.

Statistics from the U.S. International Trade Commission (USITC) showed that the total two-way trade between Vietnam and the U.S. in the first 10 months of 2024 reached $112 billion. Vietnam’s trade surplus with the U.S. was $102 billion in the period, up 26% year-on-year and equivalent to 10.4% of the U.S.'s total trade deficit.

Vietnam is actively addressing the current concerns of the U.S. regarding bilateral investment and trade relations, Prime Minister Pham Minh Chinh told U.S. Ambassador Marc Knapper at a meeting on March 13.

"Vietnam is also actively reviewing import tariffs on goods from the U.S. and encouraging increased imports of U.S. products that Vietnam has demand for, especially agricultural products, LNG, and high-tech products," Chinh noted.

A survey made in early February shows that as many as 81% of American firms in Vietnam were concerned about potential tariff imposed by the Trump administrative on Vietnamese goods, according to the American Chamber of Commerce in Ho Chi Minh City (AmCham).

The survey features over 100 member companies as respondents. AmCham elaborated that the “concern” sentiment is particularly strong within the manufacturing sector with 92% noting their concerns.

The investor.vn