Proactively respond to new countervailing tax rates

Producing export goods at Tinh Loi Garment Company Limited, Nam Sach Industrial Park, Hai Phong . (Photo: TUE NGHI)

Information on the new US reciprocal tax policy for Vietnam, afternoon of August 1, 2025, Ministry of Industry and Trade said: In the early morning of August 1, 2025 (Vietnam time), the White House posted President Donald Trump's Executive Order on adjusting the reciprocal tax rates for 69 countries and territories listed in Appendix I. The reciprocal tax rate for Vietnam decreased from 46% to 20%.

Proactive and active negotiation

According to the Ministry of Industry and Trade, since the end of April 2025, Vietnam and the United States have held many reciprocal trade negotiations at both the technical and ministerial levels. Accordingly, the two sides discussed and made progress on issues such as tariffs, rules of origin, customs, agriculture , non-tariff measures, supply chains, digital trade, sustainable development, services and investment, intellectual property, supply chains, trade cooperation, etc.

In the coming time, the two sides will continue to discuss and implement the next steps towards completing the reciprocal trade agreement based on the principles of openness, constructiveness, equality, respect for independence, autonomy, political institutions, mutual benefit and consideration of each other's development level. The two sides will strive to promote stable economic, trade and investment relations, harmonizing interests, commensurate with the Vietnam-US Comprehensive Strategic Partnership.

Deputy Director of the General Statistics Office (Ministry of Finance) Le Trung Hieu said that the average tax rate of 20% of the United States on goods export Vietnam's trade war will impact a 9-10% reduction in goods export turnover to this market, and may also reduce foreign direct investment (FDI) in Vietnam, especially from US, Chinese, and Korean enterprises due to high export costs.

However, with the signing of 17 FTAs, Vietnam has many opportunities to expand export markets, reduce tariff barriers, promote trade and investment growth, contributing to maintaining high economic growth. According to Mr. Hieu, Vietnam needs to have measures to encourage investment, diversify export markets, exploit the domestic market and improve the business environment to not only help reduce the negative impact of US tax policies but also create favorable conditions for restructuring the economy towards improving internal strength and sustainable growth.

Talking to Nhan Dan Newspaper about the new US reciprocal tax rate, Deputy Chief of Office of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex) Hoang Manh Cam assessed that it is very likely that in the coming time, textile and garment demand in the US market will decrease due to price increases, especially in the last months of 2025 because many brands have increased imports in the first half of the year to take advantage of the 90-day period of applying the 10% tax. Initially, it can be seen that we do not have an advantage because the 20% tax rate is higher than Turkey (15%), Cambodia and Indonesia (both at 19%), equal to direct competitor Bangladesh (20%) and only lower than India (25%).

Source: https://baoquangninh.vn/chu-dong-ung-pho-voi-muc-ap-thue-doi-ung-moi-3369641.html