Vietnam cuts tariffs on cars and goods amid US trade tension
Vietnam has announced a reduction in its customs tariffs on various goods, including cars, liquefied gas, and certain agricultural products, in response to the threat of increased tariffs by the United States.
According to an announcement released Monday evening on the government news portal, new preferential import duties will apply to specific products starting 31 March 2025, including cars, timber, ethanol, frozen chicken thighs, pistachios, almonds, fresh apples, strawberries, and raisins.
Vietnam has reduced customs tariffs
It was also reported that import fees for certain cars are being halved, and the tariff on liquefied gas is being reduced from 5 to 2 per cent.
Tariffs on frozen chicken thighs are dropping from 20 to 15 per cent, pistachios from 15 to 5 per cent, and almonds from 10 to 5 per cent.
The customs tariffs were lowered following a March announcement by Vietnam’s Prime Minister, Pham Minh Chinh, that authorities in Hanoi would review tariff levels to increase import volume from the United States.
"I believe that Vietnam is doing everything they can to soften the blow," said Bruno Jaspaert, head of industrial zones and the European Chamber of Commerce in Vietnam, to AFP.
Instead of reacting, they are taking the first step in the hope that they will be treated better than most, he added.
More US tariffs
On Wednesday, the President of the United States, Donald Trump, announced that on 2 April he will impose a 25 per cent tariff on all passenger cars and light trucks imported from abroad. The current rate was 2.5 per cent.
EU countries, particularly Germany, Slovakia, Italy, and Sweden, are the most essential car exporters to the USA. According to the German statistics office Destatis, in 2024, Germany exported 3.4 million new cars worth 135 billion euros, of which nearly 450,000 were exported to the USA.
European countries unanimously criticised US President Donald Trump's announcement. German Economy Minister Robert Habeck stated that additional tariffs will negatively affect European and American economies. He called for urgent negotiations to prevent a "trade war spiral. "It is now crucial that the EU delivers a decisive response to the tariffs – it must be clear that we will not back down in the face of the US. Strength and self-confidence are required," said Habeck.
