Let's talk about the US increasing import taxes.
In the past, whenever the US issued a major foreign or economic policy, it was a topic of discussion for the whole world, sometimes shaking the whole world. The fact that US President Donald Trump increased import taxes is shaking the whole world, some places protest, some places demand retaliation, some places ask for negotiations. Let's discuss it.
Dr. NGUYEN DINH LUONG
Former Head of Negotiation Delegation
Vietnam - US Trade Agreement
• July 11, 2025
XNowadays, every time the US issues a major foreign or economic policy, it is the talk of the whole world, sometimes shaking the whole world.
US President Donald Trump's increase in import taxes is causing turmoil around the world, with some places protesting, some demanding retaliation, and some asking for negotiations.
Let's look at this issue:
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1.The US economy has always been an open economy, the US market is the most open market in the world.
- In countries with open economies like the US, Singapore, Northern Europe… there are often open mechanisms and low, very low taxes.
- America advocates opening the economy, opening the market, allowing everyone to freely invest and trade. Anyone can enter as long as their goods are competitive (except for countries under embargo).
The whole world "enters" America, Americans can buy good products at cheap prices.
Thanks to the US market, many countries in Western Europe, such as Japan, Korea, Singapore, and recently China, have become rich quickly. In recent years, Vietnam's exports to the US have also increased rapidly.
2.Import tax in the US only accounts for 2% of budget revenue. Import tax is only for policy purposes. The huge budget revenue of the US mainly comes from other types of taxes such as: Income tax, corporate tax, property tax...
Previous presidents viewed low taxes as the norm of an open market economy.
In the capitalist world, specifically in the GAT 47 Agreement from its inception to the establishment of the WTO in 1995, there were 8 rounds of tariff reduction negotiations, but the tariff reductions were mainly in Western European countries and Japan. There, a high tariff barrier was erected for protection, and no tariff reductions were discussed in the US, because US tariffs were low.
On the other hand, since the 90s, previous Presidents have actively promoted globalization, pushing American businesses abroad to exploit resources and cheap labor to enrich themselves and America.
3.Under President Donald Trump, things are different. Mr. Trump has changed his policy, with Mr. Trump: "America first". Mr. Trump likes most American and foreign businesses to invest money and organize production in the US, especially high-tech products and important fields.
Mr. Trump believes that allowing foreign countries to freely exploit the large market in the US with such low taxes is unfair and unequal. The US President demands to increase taxes, increase all taxes, including friends and partners, and opposes transit goods.
Mr. Trump's sudden and high increase in import and export taxes has broken established value chains, affecting globalization, forcing both the United States and the world to go down the path of protectionism.
With Vietnam, according to the agreement, Vietnam's tax on entering the US market is 20% (will be specified later); and 40% on transit goods. US goods entering Vietnam are not subject to tax.
- Whether the 20% tax rate is high or low depends on whether Vietnamese goods will win or lose in the competition in the US market with that tax rate. Hopefully, with a lower tax rate than direct competitors, Vietnamese goods will win (taxes in other countries are 25 - 40% and may be a little lower after negotiations with some countries).
- If we win, Vietnam's exports to the US will continue to increase, and the US will still be the most important market, even when we diversify and multilateralize.
- If exports to the US increase, US investment and foreign investment in Vietnam will soon increase rapidly, including in high-tech and energy sectors...
1.In the immediate future, it is difficult for businesses, because for a long time, both Vietnamese and American businesses have depended heavily on foreign countries for raw materials and components.
Vietnam needs to quickly "localize" the production of all components, accessories, and raw materials that are currently imported.
2.Vietnam must resolutely eliminate goods disguised as "Made in Vietnam" exported to the US and other markets.
And, once committed, it must be implemented. The US will urge and support Vietnam and other countries to implement it.
3. We need a clean and reputable trade in the world market, because Vietnam is a reliable partner. Clean trade helps Vietnam develop quickly and sustainably, contributing to the building of a developed society.
1. A bold decision that Vietnam dared to make, few people thought of.
2.American goods imported into Vietnam will increase rapidly, import and export turnover between Vietnam and the US will be large.
The US trade deficit will decrease; but in the medium term, the US cannot fill the trade deficit because US goods are expensive and Vietnam's purchasing power is still limited.
3Competition in the Vietnamese market between American goods and Vietnamese goods, between American goods and goods from other countries will be fierce.
4.Vietnamese goods will quickly improve and enhance the quality to reach the same level as American goods in the Vietnamese market and in the world market.
1. Due to the negotiating talent of General Secretary To Lam: Closely following, timely, and clever.
2.Accept zero US import tax to Vietnam.
3Vietnam has good relations with the US.
4.A conscientious American in general, and an American President in particular, in their hearts think that they still owe Vietnam a debt due to 30 years of war and embargo, which left too much pain...; they do not have the heart to do anything that harms Vietnam's development, moreover, America wants to attract Vietnam, at least so that Vietnam does not follow anyone to oppose America.
5.And there may be other reasons./.
