Vietnam cuts tariffs in strategic bid to ease U.S. tensions
Vietnam has announced a reduction in its tariff rates on various goods, including cars, liquefied gas, and certain agricultural products, in response to the United States' threat of tariff increases.
An announcement published Monday evening on the government information portal indicated that, starting March 31, 2025, new preferential import tariffs will apply to certain goods, including cars, wood, ethanol, frozen chicken legs, pistachios, almonds, fresh apples, strawberries, raisins, and other selected items.
Vietnam has lowered tariff rates
It was also reported that import duties on certain cars are cut in half, and the tariff on liquefied gas decreases from 5% to 2%.
Tariffs on frozen chicken legs will drop from 20% to 15%, on pistachios from 15% to 5%, and on almonds from 10% to 5%.
The tariff rates were reduced following the announcement in March by Vietnam's Prime Minister Pham Minh Chinh that authorities in Hanoi would revise tariff levels to increase the volume of imports from the United States.
Bruno Jaspaert, who leads the industrial zones and the European Chamber of Commerce in Vietnam, told AFP that Vietnam is trying to lessen the effects of the U.S. tariff hike.
He added that rather than waiting to respond, they are taking the initiative, hoping this proactive approach will lead to more favorable treatment compared to others.
Additional U.S. tariffs
On Wednesday, U.S. President Donald Trump announced that on April 2, he will impose a 25% tariff on all passenger and light trucks imported from abroad. The previous rate was 2.5%.
Among the most essential car exporters to the U.S. are EU countries, especially Germany, Slovakia, Italy, and Sweden. According to Germany's statistical office Destatis, in 2024, Germany exported 3.4 million new cars worth 135 billion euros, nearly 450,000 of which were exported to the U.S.
European nations responded with unified criticism to U.S. President Donald Trump’s announcement. Germany’s Economy Minister, Robert Habeck, warned that the new tariffs would harm the European and American economies. He urged swift negotiations to avoid escalating into a "trade war spiral" and stressed that the EU must respond firmly, making it clear that it will not yield to pressure from the United States.
