Vietnam sees U.S. tariff hike as both challenge and opportunity, says Agriculture Minister
Minister of Agriculture and Environment Do Duc Duy has called on businesses and industry associations to view the U.S. proposal of a 46% tariff on Vietnamese exports as not just a challenge but also an opportunity for sector-wide restructuring.
During a meeting on April 7, the ministry gathered representatives from key agricultural sectors and exporters to address the potential impact of the looming tariff increase. With the U.S. currently representing 22% of Vietnam’s total agricultural export value, the new tax, if implemented on April 9, could pose significant difficulties.
Minister Duy emphasized the need for composure and flexibility, encouraging enterprises to adhere to government guidance. While Vietnam continues to negotiate with U.S. authorities in hopes of easing the tax burden, the minister stressed the importance of preparing contingency plans in case the tariff is enforced.
Beyond governmental measures, Minister Duy urged associations and companies to engage directly with their U.S. counterparts to build consensus. He underscored the importance of viewing this challenge as an opportunity to rethink production strategies, diversify markets, deepen processing capacity, and tap into new export destinations.
The ministry also pledged to support businesses in finding alternative markets and will propose financial relief policies to the government, including debt rescheduling and deferred payments, to soften the blow if the tariff remains in place.
According to Ngo Hong Phong, Director of the Department of Quality, Processing, and Market Development, Vietnam has maintained strong agricultural exports to the U.S., consistently exceeding USD 13 billion annually and achieving a trade surplus of over USD 10 billion. In 2024 alone, exports to the U.S. reached USD 14.31 billion, a 25% increase from the previous year.
In the first quarter of 2025, exports hit USD 3.21 billion, a 14.9% year-on-year rise, while imports from the U.S. grew to USD 914 million, up 7.1%. Key export categories remain timber, pepper, cashew nuts, seafood, coffee, and fruits.
Phong warned that a blanket 10% U.S. tariff could severely disrupt bilateral trade and hamper Vietnam’s agricultural growth in 2025. He recommended businesses expedite shipments ahead of April 9 and adjust operations flexibly in the following months to cushion the impact.
Enterprises were also advised to address U.S. concerns over origin fraud, particularly by strengthening traceability to avoid associations with Chinese goods.
Looking ahead, Vietnam aims to shift its focus toward markets covered by free trade agreements. Wood and wood products are set to target Japan, China, and the EU; seafood towards China, Japan, the EU, and South Korea; cashews to the EU, China, UAE, and the UK; pepper to the EU, UAE, India, and China; fruits and vegetables to China, South Korea, the EU, and ASEAN; and coffee to Germany, Italy, and Japan.
VFM
