U.S. Increases Tariffs on Imports: Impact on Vietnam’s Textile Industry
In April 2025, the administration of U.S. President Donald Trump announced the imposition of countervailing duties of up to 46% on goods imported from Vietnam. This measure is part of a broader trade strategy aimed at reducing the trade deficit and supporting domestic manufacturing. Although the tariff increase applies to various product categories, Vietnam’s textile sector—which recorded an export turnover of USD 44 billion in 2024—is expected to face particular challenges.
U.S. President Donald Trump signed a new countervailing tariff order at the White House on April 2, 2025.
Photo: THX/VNA
The Uncertainty of U.S. Tariff Policies: A Moving Target
Nevertheless, the trade environment remains complex. U.S. tariff policies are often influenced by political priorities, ongoing negotiations, and global economic dynamics. This unpredictability creates a difficult landscape for exporters, especially those in the textile industry, which relies on long-term planning and stable trade relationships. As the U.S. continues to adjust its import tax framework, Vietnamese exporters must stay informed and agile to manage risks and seize emerging opportunities.
Vietnam-U.S. Trade Negotiations: A Positive Signal
Amid these developments, Vietnam and the U.S. have agreed to initiate negotiations for a new bilateral trade agreement. This move aims to modernize and expand the 2000 U.S.–Vietnam Bilateral Trade Agreement (BTA), with a focus on tariff structures and intellectual property protection. These diplomatic efforts underscore a shared intention to strengthen long-term economic cooperation and recognize Vietnam’s growing role as a strategic trade partner.
Deputy Prime Minister Ho Duc Phoc meeting with U.S. Secretary of the Treasury Scott Bessent and U.S. Secretary of Commerce Howard Lutnick in Washington.
Photo: VGP
Temporary Suspension of Countervailing Duties: A Window for Dialogue and Strategy Adjustment
On April 9, 2025, U.S. President Donald Trump announced a 90-day suspension of countervailing duties on imports from more than 75 countries, including Vietnam, that have not imposed retaliatory trade measures against the United States. This move aims to create space for trade negotiations and to address concerns related to trade barriers, tariffs, and currency manipulation.
U.S. President Donald Trump appears in front of the White House after announcing a tariff delay.
Photo: Reuters
The Changing Landscape of Trade Policies: Embracing Flexibility
Though policy shifts may come without much advance notice, Vietnamese exporters are increasingly demonstrating resilience and adaptability. Companies that stay current with evolving trade rules and respond swiftly to change are more likely to remain competitive. In this context, flexibility is not just a defense mechanism—it’s a competitive advantage.
Optimistic Outlook for 2025
Despite the obstacles, Vietnam’s textile industry maintains a positive outlook for 2025. Ongoing trade negotiations with the U.S., combined with market diversification and improved production standards, are expected to help the industry navigate current challenges and continue its upward trajectory.
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