VINACHEM

The US will impose tariffs equivalent to those levied on its goods, with potential consequences for Vietnam and other trading partners.

On February 13, US President Donald Trump signed an executive order imposing reciprocal import tariffs on goods from other countries. Under this order, the U.S. will impose import tariffs on foreign goods equivalent to the tariffs those countries impose on American products.

This means that all U.S. trading partners are now under scrutiny, particularly those with high tariffs on U.S. goods or large trade surpluses with the U.S.

Additionally, Trump stated that the U.S. will retaliate against non-tariff barriers, including value-added taxes (VAT) and other trade policies deemed unfair. The new tariff order also targets subsidies and currency policies that hinder U.S. exports.

“We are imposing reciprocal tariffs for the sake of fairness,” Trump told reporters. “If a country taxes us, we will tax them back - no more, no less.”

He also emphasized that countries will not be allowed to reroute their goods through third nations to bypass U.S. tariffs, insisting on a level playing field.

Global financial markets react sharply

Trump’s announcement immediately sent shockwaves through global financial and commodities markets.

U.S. stock markets faced heavy selling pressure but later stabilized as investors learned the new tariffs would not take effect immediately.

The U.S. dollar dropped sharply.

Gold prices surged to nearly historic highs, reaching $2,930 per ounce by the morning of February 14.

The financial turbulence eased somewhat when reports indicated that the Trump administration would take time to assess the new tariffs before implementing them, reducing fears of immediate global trade tensions.

On the same day, Trump signed a memorandum directing officials to calculate reciprocal tariffs for each trading partner based on existing tariffs, exchange rates, trade balances, and other regulations.

This memorandum instructs U.S. agencies to develop adjusted import tariffs tailored to each country and report back within 180 days with a final “reciprocal trade and tariff strategy.”

How will Vietnam be affected?

Reciprocal import tariffs were a key campaign promise for Trump’s “Make America Great Again” (MAGA) strategy. Analysts see this move as part of his broader effort to restructure global trade in favor of the U.S.

Previously, Trump imposed tariffs on China, Canada, and Mexico, as well as all imported steel and aluminum. While tariffs on Canada and Mexico were later postponed after agreements on border security and drug trafficking, Trump has frequently threatened the European Union (EU) with similar measures due to the U.S. trade deficit with Europe.

Economists warn that Trump’s latest move could trigger a global trade war, harming all parties involved and exacerbating inflation in the U.S.

Speaking to VietNamNet from the U.S., Do Ngoc Hung, Vietnam’s Trade Counselor in the U.S., noted that the new tariffs are part of a comprehensive U.S. trade review aimed at not only tariffs but also non-tariff barriers imposed by other nations.

“Since this review extends beyond tariffs, it will be more challenging for countries negotiating trade with the U.S.,” Hung said. “While tariff adjustments can be made more easily, non-tariff barriers - such as regulations and subsidies - are complex and difficult to resolve quickly.”

Hung emphasized that the delayed implementation of tariffs gives countries time to negotiate with the U.S., potentially mitigating the impact.

Vietnam's position in Trump’s trade strategy

Tran Thi Khanh Hien, Director of Research at MB Securities, acknowledged that Trump’s tariff policy will affect Vietnam, though the extent of the impact remains uncertain.

“Trump’s decisions are often unpredictable, but he tends to target larger trading partners first,” Hien explained. “Countries that actively cooperate with the U.S. may be less affected - Japan, for example, faced little pressure during Trump’s previous term.”

Following the executive order, Trump met with Indian Prime Minister Narendra Modi, where both leaders committed to expanding U.S.-India trade to $500 billion by 2030. Modi highlighted India’s recent efforts to lower tariffs on U.S. imports, a move Trump acknowledged as a positive step.

In Vietnam, Minister of Industry and Trade Nguyen Hong Dien recently met with U.S. Ambassador Marc E. Knapper to discuss trade concerns. Dien emphasized that Vietnam’s economy is complementary to the U.S., not a direct competitor, which helps maintain a balanced and sustainable trade relationship.

Ambassador Knapper reassured that the U.S. does not target Vietnam with its tariffs and intends to continue fostering positive bilateral trade relations.  – Source: VNN