Ministry of Finance: The US's application of a 46% reciprocal tax will affect Vietnam's manufacturing industries.

At the regular press conference of the first quarter of 2025 of the Ministry of Finance on the afternoon of April 3, Mr. Truong Ba Tuan, Deputy Director of the Department of Management and Supervision of Tax, Fee and Charge Policies (Ministry of Finance), said that the US's application of a 46% reciprocal tax on goods exported from Vietnam to the US will seriously affect Vietnam's manufacturing industries, especially groups of goods with a large proportion of export turnover to the US such as electronic equipment components, agricultural products, textiles, footwear, etc.

The leader of the Ministry of Finance said that recently, in order to proactively and flexibly adapt to changes in the world economy and ensure the growth target set by the Government, the Ministry of Finance has reviewed all import tax rates and regulations on preferential import tax (MFN), thereby advising the Government to propose appropriate adjustment policies.

Specifically, on March 31, the Government issued Decree 73, significantly reducing import tax rates on a number of commodity groups of interest to Vietnam's major trading partners, including the United States.

Such tax rate adjustments aim to balance and improve the trade balance with major partners, especially comprehensive strategic partners. At the same time, domestic consumers can also access a variety of goods with lower tax rates.

When advising the Government to issue Decree 73, the Ministry of Finance proactively reviewed all tax rates currently applied to imported goods, other taxes such as value added tax, special consumption tax, environmental protection tax, etc.

Mr. Truong Ba Tuan also informed that according to the most recent report of the Office of the US Trade Representative, the average import tax rate in Vietnam is currently only 9.4%. Most US goods exported to Vietnam are subject to a tax rate of about 15% or lower, except for a few items.

"Vietnam's tariff level is much lower than the 90% and 46% rates proposed by the US," Mr. Tuan shared.

Deputy Minister of Finance Nguyen Duc Chi said that Vietnam has been proactive in reviewing and adjusting tax rates on imported goods, especially goods imported from the US, in order to balance trade among partners.

Regarding the 46% reciprocal tax rate proposed by the US, Deputy Minister Nguyen Duc Chi said that ministries and branches are also researching and studying to see what the US's calculation basis is, from which to find appropriate solutions.

The Finance Ministry leader also emphasized that the purpose of imposing tariffs is to balance trade between countries, however, trade balance needs to go hand in hand with trade turnover development. If trade balance by increasing tariffs reduces trade turnover, it is not a good solution for all parties.

"We need to persistently find solutions, discuss and share with our US partners to balance trade in a development direction, so that consumers of both economies can benefit," Deputy Minister of Finance Nguyen Duc Chi added.

Source: https://phunuvietnam.vn/bo-tai-chinh-viec-my-ap-dung-thue-doi-ung-46-se-gay-anh-huong-den-cac-nganh-san-xuat-cua-viet-nam-2025040317241996.htm