US reciprocal tariffs – highlights of the impact on Vietnam

In brief

The United States (US) administration has announced1 imposition of reciprocal tariffs on imports from key trade partners of the US. Citing concerns surrounding economic security with reliance placed on differentiated tariff rates, non-tariff barriers of trade partners, etc. the executive order issued notes large and persistent annual US goods trade deficit, posing a threat to the US national security.

These reciprocal tariffs are effectuated as ‘additional ad valorem duty’ over and above the existing tariffs for imports into the US. Starting 5 April 2025, the additional ad valorem tariff of 10% is applied on all imports entering the US [excluding United States–Mexico–Canada Agreement (USMCA) covered goods].

Additional country specific tariffs have also been notified for imports from 57 countries, which will take effect from 9 April 2025. For these countries, the base rate will further increase from 10% to the country specific rates, some of which are cumulatively tabulated below.