Which Key Export Sectors of Vietnam are Affected by Retaliatory Tariffs?
According to analysts, the retaliatory import tariff rates announced by President Donald Trump in the early morning of April 3 (Vietnam time) will strongly impact Vietnam’s electronics, machinery, textiles, footwear, and wooden furniture sectors. Early on April 3, the US President announced a new import tariff policy affecting 160 economies worldwide, where from April 5, 2025, a basic 10% tariff will apply to all imports from trading partners, and from April 9, higher import tariffs will be imposed on more than 60 countries with large trade deficits with the US, including Vietnam at 46%. This decision will seriously affect maritime transport services and cargo shipping operations from Vietnam to the US, forcing logistics companies to adjust their business strategies.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company
Computers and electronic components are among the product groups with the highest export ratio to the US market.
According to CNBC, the calculation of retaliatory import tariff rates for each country is based on the bilateral trade deficit ratio and total import turnover into the US, reflecting the degree of trade imbalance rather than nominal tariffs declared by countries. Data from Vietnam’s Statistics Office and Customs Department show that the sectors with the largest export turnover to the US are electronics, machinery and equipment, textiles, footwear, and wooden furniture, with many businesses having a high percentage of export revenue dependent on this market. These five sectors will be most affected and vulnerable, leading to a significant decline in demand for international shipping and sea freight services to the US, creating substantial pressure on businesses providing consignment import-export services.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company
Multinational companies producing electronics and machinery in Vietnam may respond better to tariffs by shifting part of their production activities to other countries, while domestic manufacturers of textiles, footwear, and wooden furniture have fewer options to redirect and find alternative markets. This situation will directly affect forwarding companies and shipping companies that specialize in serving these industries. Businesses heavily dependent on export sales will face higher costs, declining orders, and poorer operating cash flow, causing container shipping services to decline and sea freight rates to adjust to maintain competitiveness.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company
Recently, the Vietnamese Government has been actively negotiating new trade measures with the US and adjusting policies to address potential tariff risks. In addition to reducing import taxes on US goods, the Vietnamese government has approved new agreements allowing US corporations to operate in Vietnam. These measures will theoretically help promote imports of US goods and reduce Vietnam’s trade surplus with the US over time. For export businesses and import-export service providers, this is a time for strategic adjustments, with many units having increased import consignment activities to reduce risks, while diversifying markets to reduce dependence on Vietnam-US trade.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit
How long the 46% import tariff rate will be applied depends on the outcome of upcoming negotiations between the two governments. In the meantime, businesses and international shipping service providers need to prepare contingency plans. Finding new markets and diversifying services is essential for international shipping and export transportation units. Improving service quality, optimizing costs, and applying new technology in supply chain management will help businesses overcome this difficult period while increasing competitiveness in the new context.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit
The 46% tariff rate that the US applies to goods from Vietnam will certainly create significant challenges for the export industry and logistics shipping. However, this is also an opportunity for Vietnamese businesses to diversify markets and improve product and service quality. It’s important to remember that within every challenge lies opportunity, and transport companies as well as import-export service providers can take advantage of the current situation to expand operations to other potential markets such as the EU, Japan, South Korea, and ASEAN countries. Developing high value-added services and creating new competitive advantages will be key to overcoming this crisis.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit
Please don’t hesitate to contact if you have anymore questions!
Mr. Jimmy
General Manager TPG
(+84)-(0)903917505
