Dong Nai takes proactive steps to respond to US's 20% reciprocal tariff policy

(ĐN) – On August 1, Ministry of Industry and Trade (MoIT) released information regarding a decree issued by US President Donald Trump on the adjustment of reciprocal tariffs.

Accordingly, Vietnam is among 69 countries and territories subject to the US's revised reciprocal tax policy. Specifically, the tariff imposed on goods originating from Vietnam has been reduced from the initially proposed 46% in early April 2025 to 20%.

This new US tariff policy is estimated to impact businesses in Dong Nai. In photo: A label production line at an FDI enterprise in Dong Nai.

The reduction is a result of high-level negotiations between leaders of the Party and State of Vietnam and US counterparts, along with relevant central ministries and agencies, over the past four months. Throughout the negotiation process, both sides focused on key issues and achieved significant progress in areas such as tariffs, rules of origin, customs, agriculture, non-tariff measures, digital trade, services and investment, intellectual property, sustainable development, supply chains, and trade cooperation.

According to the MoIT, in the first five months of 2025, two-way trade between Vietnam and the United States reached US$77.4 billion, up 36.5% year-on-year. Of this, Vietnam’s exports totaled US$71.7 billion (up 37.3%), while imports reached US$5.7 billion (up 30.7%). Vietnam’s trade surplus with the US stood at US$64.8 billion, a 29% increase compared to the same period in 2024, ranking fourth globally behind China, Mexico, and Iceland.

In Dong Nai, during the same five-month period, export turnover to the US market was estimated at nearly US$3.8 billion, accounting for 35% of the province’s total export value.

Based on the trade growth scenario for 2025 prepared by Dong Nai Department of Industry and Trade (DoIT) after the conclusion of bilateral trade negotiations with the US in early May 2025, the application of a 20% reciprocal tariff by the US is forecast to affect the competitiveness and export orders of many local enterprises.

In particular, textiles and footwear are estimated to see a 5–10% reduction in orders from the US market. The wood industry may face higher tariffs on certain lines of wooden furniture, forcing businesses to adjust prices or seek alternative markets. Meanwhile, sectors like coffee, cashew nuts, and seafood will be less affected, though still face strong price competition.

In response, the DoIT has proactively developed action plans, including support for businesses in maintaining and renegotiating export orders. It has also encouraged companies to adjust export prices, delivery schedules, and shipping policies to mitigate increased costs due to tariffs. Furthermore, the department is actively promoting the exploration of alternative markets, particularly those with existing free trade agreements (FTAs) with Vietnam, such as the EU, South Korea, and Japan, in order to reduce dependence on the US market.

By N. Lien/Translated by M.N-H.T