Hot! Vietnam Will Face a 20% Tax on Goods Sent to America

President Donald Trump appreciates Vietnam's commitment to opening its market to American goods, such as large displacement cars, and affirms that the United States will fall tariffs on Vietnam's exports. He commits to continuing to work together to resolve bilateral trade obstacles. General Secretary To Lam urged the United States to soon recognize Vietnam as a market economy and to lift restrictions on the export of certain high-tech goods. The two leaders agreed to enhance delegation exchanges and promote economic, trade, and investment cooperation, particularly in key areas such as science and high technology. President Donald Trump announced a 20% tax on Vietnamese goods exported to America and 40% on goods deemed as "transshipment," while American goods entering Vietnam enjoy a 0% tax. Due to a significant dependence on the American market, accounting for nearly 30% of export turnover, this new tax rate is expected to have a considerable impact on the Vietnamese economy in the coming period. 20% Tax On Goods Originating From Vietnam Vietnam's key export sectors such as textiles, leather and footwear, and electronics – which depend on the American market – need to be closely monitored in light of the 20% tariff that President Trump deems "fair and necessary." Although lower than the previously proposed rate of 46%, this tax rate is still significant. The "countervailing duty" policy of America under Trump is complicating the tariff landscape in the ASEAN region.

The above tax rates are part of the "countervailing tax" policy of the Trump administration and may be adjusted according to negotiations and the economic-political situation. In addition, America also applies a basic tariff of 10% on most imports, and higher countervailing duties will be added when necessary. 40% Tax on "Transshipped" Goods A notable point in the agreement is that goods suspected of being "transshipped" – merely packaged and relabeled in Vietnam – will be subjected to a record high tax of 40%. Although America has previously warned about this situation, it is still unclear what the criteria for determining "transshipment goods" are, which puts Vietnamese businesses at risk of legal issues and significant compliance costs until specific guidelines are provided. 0% Tax on American Goods Entering Vietnam President Trump announced that he will negotiate for American goods, especially electric and gasoline vehicles, to enjoy a 0% tax rate when entering Vietnam. If implemented, this will create a significant advantage for American companies like Tesla and Ford, while disadvantage domestic businesses like VinFast. The sectors heavily affected include: Cars – Electric vehicles – Spare parts: American products being tax-exempt will create significant competitive pressure on VinFast and domestic manufacturers. Technology – Consumer electronics: Genuine American products ( Apple, HP… ) will be cheaper, posing challenges for assembly businesses, OEMs. Agriculture & Food: American products such as meat, milk, soybeans… directly compete with TH, Vinamilk, Masan… Retail & E-commerce: Amazon, Walmart may penetrate deeper, threatening domestic systems like Co.opmart, Tiki. In summary, a 0% tax benefits consumers, but creates significant competitive pressure on Vietnamese businesses.