The US President imposed retaliatory tariffs of up to 46% on Vietnam.
At 2:00 AM on April 3rd, US President Donald Trump imposed retaliatory tariffs of 10% on over 180 economies, with Vietnam bearing the highest 46% tariff among dozens of economies subject to retaliatory measures.
The US imposes retaliatory tariffs of up to 46% on 90% of goods from Vietnam.
US President Donald Trump announced the imposition of a minimum 10% retaliatory tariff on all goods imported into the US. Countries with significant trade relations with the US, such as China, the EU, Japan, South Korea, and Vietnam, will face higher tariff rates.
Vietnam is among the countries subject to the highest tariffs: 46% applied to 90% of goods. China is subject to a 34% tariff, Japan 24%, South Korea 25%, and Taiwan 32%. Other Southeast Asian countries such as Thailand, Indonesia, Malaysia, the Philippines, and Singapore also face tariffs ranging from 10% to 36%.
The base tariff of 10% will take effect on April 5th. Higher tariffs will begin on April 9th, applying to approximately 60 countries. However, Canada and Mexico are not included in this list due to prior application of other tariffs.
According to Trump, these tariffs are in response to several countries imposing high taxes on American goods. Specifically, American goods entering Vietnam, China, and the EU are subject to tariffs of 90%, 67%, and 39%, respectively. The White House stated that this action is to protect America's trade interests and ensure fair tariffs.
Countervailing duties will not apply to certain special items such as copper, pharmaceuticals, semiconductors, lumber, gold, energy, and certain minerals that are not readily available in the United States.
In addition to import tariffs, Trump also signed an executive order closing a loophole in the "de minimis" rule – which allows goods under $800 to be exempt from tariffs. The order, effective May 2nd, aims to prevent the exploitation of this rule to ship goods from mainland China and Hong Kong into the United States.
A US official revealed that Trump is considering imposing additional tariffs on key industries such as semiconductors, pharmaceuticals, and strategic minerals. In addition, a 25% tariff on imported cars and components will begin on April 4th.
The Trump administration argued that tariffs were an effective tool for addressing a number of issues, including the trade deficit, combating illegal immigration, controlling fentanyl, and reviving domestic production. However, experts warned that these measures could slow the global economy, increase the cost of living, and make it difficult for American businesses to operate.
The new tax announcement triggered a negative reaction in the US financial markets. Wall Street stocks have fallen sharply since February, wiping out nearly $5 trillion in market capitalization due to concerns about growth, inflation, and corporate profits.
Many countries have reacted cautiously.
Following the US decision to impose tariffs, many countries have reacted cautiously. British Business and Trade Minister Jonathan Reynolds stated on April 2nd that London remains committed to pursuing an economic agreement with Washington aimed at mitigating the impact of the 10% tariff on exports to the US.
Mr. Reynolds stressed that the UK would remain calm, continue negotiations, and work closely with domestic businesses to assess the impact and prepare for further steps if necessary. Although President Trump asserted that the UK was among the countries with the lowest tariffs, the UK remained open to taking action if needed.
In Europe, Italian Prime Minister Giorgia Meloni strongly criticized the US tariff policy. She called it a mistake and warned that a trade war would weaken the West while creating opportunities for other countries to benefit.
From Australia, Prime Minister Anthony Albanese also expressed his displeasure, stating that imposing tariffs on a close ally like Australia was "unfounded" and "not the act of a friend." However, he affirmed that Australia would not retaliate with tariffs.
On the US side, the White House confirmed that the basic tariff of 10% will take effect at 00:01 on April 5th US time (11:01 AM the same day Hanoi time). Higher tariffs for different partners will begin to be implemented from 00:01 on April 9th.
