Vietnam slashes tariffs to counter US trade pressure
Vietnam announced a reduction in its tariff rates on many goods, including cars, liquefied gas, and certain agricultural products, in response to the United States' threat of tariff increases.
According to an announcement released Monday evening via the government's official information portal, new preferential import tariffs will apply to certain goods starting March 31, 2025, including cars, wood, ethanol, frozen chicken legs, pistachios, almonds, fresh apples, strawberries, and raisins.
Vietnam has lowered tariff rates
It was also reported that import duties on certain cars will be cut in half, and the tariff on liquefied gas will decrease from 5% to 2%.
Tariffs on frozen chicken legs will drop from 20% to 15%, pistachios from 15% to 5%, and almonds from 10% to 5%.
The tariff rates were reduced following the March announcement by Vietnam's Prime Minister Pham Minh Chinh that authorities in Hanoi would revise tariff levels to increase the volume of imports from the United States.
"I believe that Vietnam is doing everything they can to soften the blow," said Bruno Jaspaert, head of the industrial zones and the European Chamber of Commerce in Vietnam, to AFP.
He noted that rather than waiting to respond, they are taking the initiative, hoping this proactive approach will result in more favorable treatment compared to others.
Additional U.S. tariffs
On Wednesday, the President of the United States, Donald Trump, announced that on April 2, he will impose a 25% tariff on all passenger and light trucks imported from abroad. The previous rate was 2.5%.
Among the most essential car exporters to the U.S. are EU countries, especially Germany, Slovakia, Italy, and Sweden. According to Germany's statistical office Destatis, in 2024, Germany exported 3.4 million new cars worth 135 billion euros, nearly 450 thousand of which were exported to the U.S.
European nations collectively voiced strong disapproval of U.S. President Donald Trump's announcement. Germany’s Economy Minister, Robert Habeck, warned that the proposed tariffs would harm European and American economies. He emphasized the need for immediate dialogue to avoid escalating tensions into a full-blown trade conflict. Habeck also stressed that the European Union should respond decisively, clarifying that it will not yield to pressure from the United States.
