Vietnam Seen as New Target for Trump’s Tariffs
HANOI (Reuters) – Vietnam is vulnerable to becoming the next target for tariffs from the Trump administration as its trade surplus with the United States has ballooned, according to industry executives and analysts.
The communist-run country, which is home to large industrial operations of US multinationals such as Apple, Google, Nike, and Intel, has the fourth highest commercial surplus with the United States, topped only by China, the European Union, and Mexico.
US trade data released on Thursday showed Vietnam’s trade deficit with the United States reached $102 billion in the first ten months of this year, nearly a 20% increase over the same period in 2023.
According to trade policy expert Deborah Elms, “For Trump the main metric is the trade deficit, and the Vietnam number is bad. Vietnam is an ideal candidate for early action because it cannot easily retaliate.”
President-elect Donald Trump has threatened tariffs of up to 20% on all US imports during his election campaign. His son Eric, a top adviser, has also cited Vietnam among countries that “ripped off” the US, according to a video shown at a recent business conference in Hanoi.
Some industry executives and analysts are concerned about the potential impact of tariffs on Vietnam. “The new tariffs are one of the biggest concerns for the Korean industry in Vietnam,” said Hong Sun, head of South Korea’s chamber of commerce in Vietnam.
Vietnam’s foreign affairs ministry did not comment on potential tariffs, but officials have repeatedly urged Washington to maintain seamless trade. The country could also face tariffs due to the appointment of Peter Navarro as Trump’s senior counselor for trade and manufacturing, who has suggested that tariffs on Vietnam would be effective in cutting the US trade deficit.
Vietnam has benefited from trade barriers imposed by Trump on Beijing, leading manufacturers to shift production out of China. However, the country would need to improve the traceability of goods and components to dispel concerns of being used as an assembling site for products made in China.
The country could offset its large trade surplus by increasing imports from the US, including liquefied natural gas, drugs, and airplanes, officials have said. However, it is unclear whether Vietnamese authorities support these offsetting measures and how significant they could be.