Vietnam regrets US tariff decision: MoFA

THE HANOI TIMES — Vietnam regrets the United States' decision to impose reciprocal tariffs on its exports, but remains committed to working with Washington to find constructive solutions and promote stable bilateral economic relations.

Foreign Ministry Spokesperson Pham Thu Hang said today [April 4] in response to Washington's latest trade measures targeting a wide range of economies.

"We believe this decision does not reflect the current state of mutually beneficial economic and trade cooperation between the two countries. It is inconsistent with the spirit of the Comprehensive Strategic Partnership for peace, stability, cooperation, and development," Hang added. "If enforced, it will have a negative impact on bilateral trade relations and the interests of the two peoples and businesses of both countries."

Hang said Vietnam has been actively discussing with the US to resolve outstanding issues and promote fair and sustainable trade. "Vietnam will continue to work with the US in a constructive and cooperative manner to seek concrete solutions that support the stable and sustainable development of bilateral economic ties and are mutually beneficial."

On April 2, US President Donald Trump announced new import tariffs on more than 180 trading partners. About half will face a 10% across-the-board tariff starting April 5, while major trading partners, including Vietnam, will face up to 50% rates starting April 9. Vietnam would be hit with the highest of 46% along with China, Cambodia, Indonesia, and Myanmar.

Vietnamese Prime Minister Pham Minh Chinh chaired an emergency meeting with cabinet officials on April 3 and ordered the setting up of a rapid response task force headed by Deputy Prime Minister Bui Thanh Son. Deputy Prime Minister Ho Duc Phoc was tasked with leading consultations with relevant ministries and major exporters.

On the same day, the Ministry of Industry and Trade sent a note verbale requesting the US to postpone the tariff decision for further discussions, and is arranging ministerial and technical level discussions between the Ministry and the US Trade Representative (USTR).

Ta Hoang Linh, Head of the Department of Foreign Market Development at the Ministry of Industry and Trade, said the ministry "regrets the US tariff announcement" and called the 46% rate "unjustifiable and fundamentally unfair."

He added: "It does not reflect Vietnam's goodwill and efforts to address the trade imbalance between the two countries. Vietnamese authorities have recently taken steps to address US business concerns, including reducing MFN (most-favored nation) tariffs on 16 product groupings - 13 of which are beneficial to US exporters. For example, tariffs on some automobile models and wood products have been reduced to 0%.

Vietnam and the US signed a bilateral trade agreement in 2001, but have yet to conclude a formal free trade agreement. Vietnamese exports to the US reached $119.5 billion in 2024, while imports from the US totaled $15.1 billion, according to customs data.

Despite the large trade surplus, Linh noted that the two economies are complementary, not directly competitive, with Vietnamese exports meeting US consumer demand at competitive prices.

Vietnam has set an export growth target of 12% to $450 billion in 2025. However, exporters in key sectors such as agriculture, textiles, and seafood have raised concerns about the impact of the 46% reciprocal tariff.

"If Vietnam and the US cannot find a constructive solution, the export growth target may be affected," Linh acknowledged. He added that the ministry had anticipated such risks and prepared contingency plans.

He urged exporters to leverage Vietnam’s 17 free trade agreements with over 60 countries and territories, along with 70 bilateral cooperation frameworks. "The US accounts for 13% of global imports, which means 87% of the global market remains open to Vietnamese goods," Linh said, citing ongoing efforts to diversify export markets.

Vietnam is also accelerating FTA negotiations with partners in the Middle East, Latin America, Central Asia, and other emerging markets while boosting trade promotion and improving logistics infrastructure to enhance competitiveness.

The country's overseas trade offices are also stepping up efforts to connect businesses and support exports. In the long term, Linh said, Vietnam must restructure its economy and diversify markets, products, and supply chains to ensure resilient and sustainable growth.