US imposes additional 10% tax on Chinese goods: Opportunity or risk warning for Vietnamese businesses?

The US's imposition of an additional 10% tax on Chinese imports from early March continues to raise concerns about global trade and new challenges, but not without opportunities.

US policy impacts the steel industry - Photo: N.KH.

The above comments were made at a trade promotion conference of the Vietnamese trade office system abroad organized by the Ministry of Industry and Trade on the morning of March 4.

A series of tax policies impact global trade

According to Mr. Do Ngoc Hung - Trade Counselor, Head of the Vietnam Trade Office in the US, over the past four weeks, US President Donald Trump has introduced policies, especially initiating unfair trade measures from global partners to have corresponding tariff policies.

The US announced an additional 10% tax, bringing the total to 20%, on Chinese goods, a 25% tax on Mexican and Canadian goods, and a tax exemption on Chinese postal items.

Thus, with the monitoring and consideration of imposing tariffs on aluminum and steel exported to the US under Section 232 on national security; the US is also investigating two wood products on national security grounds, planning to impose a 25% tariff on automobiles, pharmaceuticals and semiconductors, increasing trade defense investigation measures...

Analyzing these policy moves, Nong Duc Lai, Commercial Counselor - Head of the Vietnam Trade Office in China, said that the additional 10% tax on Chinese exports will have a huge impact on exports, reducing investment and consumption in this country.

In particular, most industries such as trade, employment, finance, currency, technology... are affected, causing difficulties for Chinese businesses and reducing the competitiveness of goods.

Faced with US countermeasures and retaliatory tariffs, Mr. Lai said China responded cautiously and flexibly.

Maintaining dialogue to reduce tension, introducing multi-dimensional policies, and minimizing negative impacts.

Including domestic consumption policy, promoting the domestic market; reducing required reserve ratio, reducing interest rates; increasing multilateral cooperation, expanding markets, promoting FTAs ​​already participated in, increasing foreign investment...

These multi-dimensional reactions from major countries, according to the Vietnamese Trade Counselor in China, all have an impact on Vietnam's economy and trade. Because these are all leading important trade partners, in which China is our country's second largest export market.

What is the impact on Vietnam?

On the positive side, Mr. Lai said Vietnam could continue to welcome a wave of investment relocation. Vietnamese enterprises will have the opportunity to participate in the supply chain and become a production center. This wave will contribute to job creation and improving skills.

China's stimulation of domestic consumption will help increase import demand, opening up more opportunities for Vietnamese goods to penetrate the market more deeply.

However, there are negative impacts when Chinese goods are restricted to the US and EU countries, they will have to find alternative markets, including possibly Vietnam. This creates more fierce competition pressure with domestic goods.

Pressure on the yuan exchange rate forces China to make adjustments to support exports. When this country shifts to other markets, it will produce lower-standard goods and compete for orders with other countries, affecting our exports.

Faced with the above reality, Vietnamese trade offices in the US and EU recommend that businesses and associations continue to proactively grasp information, closely monitor market and industry developments, and policy moves of the US and China to respond promptly.

At the same time, it is necessary to expand the market, effectively exploit FTAs, and maximize the potential of the Chinese market as it is still a huge market.

The EU is also worried about being taxed.

Mr. Tran Ngoc Quan, Vietnam's Trade Counselor in Belgium and the European Union (EU), said that the US policies will have a major impact on trade in general. In particular, EU countries are concerned about whether or not they will be subject to a 25% tax, so the European Union has also set up a response working group based on an assessment of the benefits.

Since the beginning of 2025, the EU has decided to monitor border gates for agricultural and industrial products, and quickly warn about quality and safety.

Therefore, some industrial products of Vietnam have begun to arise, such as phone chargers, warning of lead residue in products affecting the environment; agricultural products such as vegetables and fruits listed in Appendix 2 are being specially monitored.

Source: https://tuoitre.vn/my-ap-thue-them-10-voi-hang-trung-quoc-co-hoi-hay-rui-ro-canh-bao-doanh-nghiep-viet-20250304120013989.htm