New US Taxes: Agricultural Industry 'Staying the Same, Responding to All Changes'

Early morning on April 3, Vietnam time, US President Donald Trump signed an Executive Order, applying minimum and additional tariffs to 180 import markets. In particular, for Vietnam alone, the announced tax rate is 46%, among the highest in the world . The new US tax policy has created a big challenge for Vietnam's agricultural exports because competitors such as Thailand and India have an advantage thanks to lower tariffs.

Deputy Minister of Agriculture and Environment Phung Duc Tien shared about the implementation of timely solutions to help the agricultural sector overcome challenges and achieve growth and export targets.

Aquaculture is one of the sectors greatly affected by the new US tax rate. (Photo: PV/Vietnam+)

Applying the philosophy of "remaining constant, adapting to all changes"

- Deputy Minister, what impact will the US's application of a 46% reciprocal tax rate have on Vietnam's agricultural sector, especially the export of agricultural, forestry and fishery products?

In the market structure of agricultural, forestry and fishery exports to more than 200 countries and territories, in 2024, the US will reach a turnover of 13.8 billion USD and be the leading market, followed by China with 13.6 billion USD in second place. This structure shows Vietnam's advantages when participating in the US market.

When Vietnamese agricultural products entered the US market, they faced many barriers such as anti-dumping and requirements for equivalent standards. However, we have overcome these obstacles. With a tax rate of 46%, Vietnamese agricultural products will be directly affected. However, in the spirit of "with the constant, adapt to all changes", we need to focus on directing production, improving productivity and quality while reducing costs to compete with other markets.

Of course, during the process of increasing taxes, Vietnam still needs to continue to make recommendations to US state management agencies for adjustments. The US is currently a comprehensive strategic partner of Vietnam, so economic sectors, especially agriculture, benefit from this relationship.

Information about the new tax rate has been announced, so this afternoon (April 3), the Ministry of Agriculture and Environment will listen to feedback from associations and businesses to discuss solutions to overcome difficulties.

- So, will the growth and export targets of the agricultural sector be adjusted compared to the original plan, Deputy Minister?

On April 1, the Ministry of Agriculture and Environment held a meeting on the 4% growth target for 2025. By the end of the first quarter, the agricultural sector reached an expected 3.69%. Normally, the second quarter grows higher than the first quarter and the fourth quarter grows higher than the third quarter. Therefore, the growth target for the first quarter was 3.7% and we have reached approximately this level.

Regarding exports, this year the Ministry of Agriculture and Environment strives to reach 65 billion USD and by the end of the first quarter, agricultural, forestry and fishery exports reached 15.72 billion USD, an increase of 13.1%.

If the US market is strongly impacted, we will need to discuss solutions for implementation in industries and fields so that exports can still strive to reach the target of 64-65 billion USD assigned by the Government.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien. (Photo: Vu Sinh/VNA)

- Could you please tell us what solutions the agricultural sector needs to focus on right now?

The agricultural sector needs to focus on applying science and technology to improve productivity, quality, reduce costs, and meet US market standards. At the same time, it is necessary to expand other markets to reduce dependence on a single market.

For example, China with 1.4 billion people is the second largest export market for agricultural, forestry and fishery products and there are many agricultural products of Vietnam that can be exported to China. In particular, we need to focus on products that have signed the Protocol on official export to China such as frozen durian, crocodile, monkey and many products in the fields of cultivation and fishery.

Besides China, the European market also accounts for 44% of agricultural, forestry and fishery export turnover and it is necessary to continue developing this market.

Thus, the agricultural sector needs to both reorganize production and apply technology in the spirit of Resolution 57 to increase value, productivity, quality, reduce costs, ensure US market standards, and expand other potential markets.

Clearing "bottlenecks" to increase value

- Besides market expansion, which key export products will be able to make a breakthrough to offset the impacts of US reciprocal tariffs?

In the export structure, the export value of forestry is over 17 billion USD, rice is nearly 6 billion USD, coffee strives to reach 6 billion USD. Last year, the total seafood turnover reached 14.07 billion USD, this year it is expected to reach 10.5 billion USD.

Coffee this year decreased by 28% in volume but increased by 26% in value, aiming to reach 6 billion USD. Rubber and cashew nuts both grew. Rice and durian export values may decrease, but "bottlenecks" are being removed to help these two industries grow again. In general, key industries maintained high growth rates.

The agricultural sector needs to expand to other markets to reduce dependence on a single market. (Photo: PV/Vietnam+)

- Fisheries is a sector that will be heavily affected by the application of new reciprocal tax rates. So, according to the Deputy Minister of Fisheries, what solutions should the fisheries sector implement to overcome this difficulty?

In the structure of seafood exports, the value of seafood exports in the first 3 months of 2025 to the US market reached over 300 million USD, the rest is to the European market, China, Japan and other markets. For industries such as pangasius and shrimp, which are the main export products and the US market, we need to evaluate carefully.

Currently, Vietnam’s shrimp output is about 1.3 million tons, reaching a turnover of 4.3 billion USD. Pangasius output is 1.65 million tons, worth over 2 billion USD. New motivation for these two industries needs to be discussed carefully to be able to compete with India and Ecuador. Pangasius already has an advantage and needs to be further promoted.

In the export scale of over 300 million USD, we have to "dissect" thoroughly. First, the US still needs to recognize the equivalence of standards for pangasius; second, for shrimp, the US annually inspects Vietnam's food safety, and we still ensure these standards; third, export shipments need to minimize the index of heavy metals, microorganisms, antibiotics, etc. to maintain output and value.

Each export subject has its own "bottlenecks" that need to be cleared by improving capacity, proactively integrating, increasing output and value, contributing to achieving the export target of 64-65 billion USD by 2025 and the following years.

- Thank you very much, Deputy Minister!

(Source: vietnamplus)

Link: https://www.vietnamplus.vn/thue-moi-cua-my-nganh-nong-nghiep-to-chuc-lai-san-xuat-mo-rong-thi-truong-post1024553.vnp?fb clid=IwY2xjawJbHX9leHRuA2FlbQIxMAABHZ7xSRVc1BMopsuuD4SjBEyP-dfunTyYKBrC3cJqXIYFjDGwB6TBWNdRDA_aem_3ofZpzrkBWPOU2vWsZFkXQ

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