Vietnamese as well as US business communities calling on the administration of President Donald Trump to halt plans for new tariffs on Vietnamese exports, are warning that the proposed 46% reciprocal tariff could wreak havoc on trade flows, in addition to supply chains, and key industries across both economies, even as news of a 90-day reprieve breaks.

In the build up to President Trump’s latest about-turn however, a joint letter submitted to US Secretary of Commerce Gina Raimondo, the Vietnam Chamber of Commerce and Industry (VCCI) and also the American Chamber of Commerce in Hanoi (AmCham) urged the president to at least temporarily suspend the imposition of retaliatory tariffs the Vietnam News reports; a goal now seemingly achieved.

The groups cautioned that the move, if implemented, would disrupt business operations, damage bilateral trade relations, and threaten consumer welfare in both countries. The letter expressed hope for open dialogue and collaborative efforts between the two governments to constructively reduce the US trade deficit with Vietnam, aiming for improved living standards and mutual prosperity.

The appeal followed a White House announcement last week in which the Trump administration outlined the possibility of reciprocal tariffs of up to 46% on imports from Vietnam, citing the country’s significant trade surplus with the United States.
“These unexpectedly high new tariffs will negatively impact the operations of our member businesses and consumers,” the joint letter stressed, warning that increased duties would do little to support the US economy.

As the US president has now called for a 90 days pause on tariffs above 10% from taking effect, the coming days and weeks will show just how effective behind the scenes negotiations have been.

Few industries are as vulnerable to the tariff as Vietnam’s seafood sector, one of the country’s largest export earners the Vietnam New report continues.
Truong Huu Thong, chairman of T&T Co., Ltd., a major exporter of shrimp and tilapia in Binh Thuan Province, said his company may be forced to exit the US market altogether (if the higher rate of tariffs are reinstated).
“With the steep tariff, my company would no longer be able to continue exporting seafood to the US,” Thong said in the report. “The US sets the benchmark for seafood prices globally; Europe and Japan follow its lead. This change could shift the entire pricing structure” he added.

Nguyen Van Trien, director of Tan Phat Foods Corporation, which exports tuna from factories in Phu Yen and Long An province, echoed Thong’s concerns. “If the 46% tariff is applied, our products would not be able to compete,” he said in the report. “Customers will inevitably shift to markets with lower tariffs 10 to 30%, abandoning Vietnamese products.”

Both executives said they were already exploring alternative markets in Europe, Japan, South Korea, Canada, and Australia. Meanwhile Vu Dinh Dap, president of the Vietnam Tuna Association, acknowledged the root of the issue in the form of Vietnam’s growing trade surplus with the US – but he too called for a measured approach.

“The tariff is a general rate applied to all Vietnamese exports, not just seafood,” Dap is reported as saying. “Businesses are still uncertain about how much tariff will be applied to each specific product.” He urged exporters to remain patient and trust in ongoing diplomatic efforts. “Enterprises should stay calm and look forward to the Vietnamese government’s response while exploring other potential markets.”

The Vietnam Association of Seafood Exporters and Producers (VASEP) has already pressed the issue with the nation's prime minister as well as a number of ministries. Vice-secretary general Le Hang said the steep tariff could devastate profit margins. “For example, a shrimp shipment worth $500,000 that previously incurred a 5% duty—or $25,000—would now be taxed at 46%, or $230,000,” Hang said. “That’s an increase of $205,000. It’s simply not sustainable.”

VASEP has asked the US and Vietnamese governments to negotiate a reduction in the tariff and consider separate rates for different seafood categories. These negotiations will presumably continue during the next 90 days.

The group has also proposed that Vietnam reduce its import tariffs on US seafood to zero as a goodwill gesture.

At a quarterly press briefing on April 3, Tran Ba Tuan, Deputy Director General of the Department of Tax Policy and Fee Management at Vietnam’s Ministry of Finance, said the proposed tariff could seriously impact several key export sectors, including electronics, textiles, agriculture, and footwear.

Quoted by Vietnam News, Tran said “the tariff rate announced by the US is exceptionally high compared to the prevailing rates,” Tuan said. “This will severely affect many of Vietnam’s key manufacturing sectors.” Tuan pointed out that Vietnam’s average tariff on US goods is around 15%—far below the 90% figure cited by some US sources. “We need clarity on how the US arrived at the figure of 90% and used it to justify a 46% retaliatory tariff,” he said according to Vietnam News.

On March 31, Vietnam issued Decree No. 73/2025, reducing import duties on 16 categories of goods—including agricultural products, ethanol, wood products, and automobiles. Many of the changes were designed to benefit U.S. exporters and promote a more balanced trade relationship. Deputy Minister of Finance Nguyen Duc Chi said Vietnamese authorities are actively analysing the situation and preparing both short- and long-term responses.

Chi expressed hope that the US would heed Vietnam's concerns and implement a more balanced policy. He revealed that a Vietnamese delegation will travel to Washington this weekend to engage in high-level negotiations. “We hope that the 46% figure is simply a maximum threshold and that a more reasonable, specific rate will be negotiated following these talks,” Chi said.

Despite the current levels of tension in Hanoi and around the country, both VCCI and AmCham emphasised that Vietnam and the US are fundamentally economic partners, not rivals.

“Vietnam has become one of the fastest-growing export markets for the US,” their letter read. “With a rapidly expanding middle class, opportunities for American businesses in agriculture, aviation, energy, pharmaceuticals, technology, and more are immense.”

Regarding ongoing issues in digital trade, intellectual property, pharmaceuticals, customs, data security, and procurement, the organisations committed to further collaboration with government bodies to find solutions. The VCCI also communicated its continued opposition to tariffs directly to the USTR, the US Chamber of Commerce, and other relevant parties, emphasising the complementary nature of the two economies and urging a return to negotiations to safeguard mutual benefits, albeit now with the pressure off for at least three months.