As of Wednesday, April 23, 2025, there have been significant updates regarding tariffs affecting Vietnam. The United States has imposed a new wave of tariffs on global trade partners, citing a "national emergency" due to unfair foreign trade practices. Here's a breakdown of the key developments: US Tariffs on Vietnamese Imports: 46% Reciprocal Tariff: Effective April 9, 2025, the United States implemented a 46% reciprocal tariff on all goods imported from Vietnam. This is in addition to any existing duties.   Rationale: The US administration stated that this high tariff is a response to Vietnam allegedly charging an average tariff rate of 90% on US goods, based on the significant trade surplus Vietnam has with the US. However, Vietnam's actual average Most-Favored-Nation (MFN) applied tariff rate was 9.4% in 2023. The US calculation appears to be based on dividing Vietnam's trade surplus with the US by the total trade volume between the two countries.   90-Day Pause and Baseline Tariff: While the 46% tariff was initially slated to take effect on April 9th, there was a 90-day pause announced for most countries, except China. During this pause, a universal baseline tariff of 10% was applied to imports from Vietnam, starting April 5, 2025. It's unclear if this pause has been lifted as of today's date. Impact: This tariff is expected to significantly impact Vietnam's export-driven economy, particularly key sectors like apparel, electronics, furniture, and seafood, which heavily rely on the US market. Some US retailers have reportedly postponed orders due to anticipated cost increases.   Vietnam's Response: Negotiations: Vietnam has expressed its willingness to negotiate with the US to bring the import tariff rate for US goods down to 0% and increase the procurement of US products.   Decree 73/2025/ND-CP: Prior to the US tariff announcement, Vietnam issued this decree on March 31, 2025, amending previous tariff schedules. It reduced import duties on 16 categories of goods, many of which are exported from the US, aiming to improve the bilateral trade balance. Examples of reductions include: Sedans and 4WD vehicles (HS 8703.24.51): Reduced from 45% to 32%. Ethanol: Reduced from 10% to 5%. Frozen chicken thighs: Reduced from 20% to 15%.   Pistachios (in-shell): Reduced from 15% to 5%.   Passenger vehicles (HS 8703.23.63 and 8703.23.57): Reduced from 64% to 50%.   Various agricultural products like almonds, fresh apples, sweet cherries, raisins, corn kernels, and soybean meal were reduced to 0% or 5%. Certain wood products and Liquefied Natural Gas (LNG) also saw reductions.   Seeking Alternatives: Vietnam is reportedly increasing its focus on exports to countries within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). Other Tariff-Related Updates: Solar Panel Tariffs: The US Commerce Department recently set final countervailing and anti-dumping duty rates on crystalline solar cells and modules imported from Vietnam, Malaysia, Thailand, and Cambodia. These duties are in addition to existing Section 201 solar tariffs and the reciprocal tariffs. The final rates for Vietnam vary depending on the supplier.   Steel and Aluminum Tariffs: Earlier in 2025, the US reinstated a 25% tariff on all steel imports and increased the tariff on aluminum imports to 25%. These apply globally, including to Vietnam. Auto Tariffs: The US also imposed a 25% tariff on imported automobiles and certain auto parts, effective April 3, 2025.   General Information on Vietnam's Tariffs: Vietnam has bound 100% of its tariff lines in the World Trade Organization (WTO), with an average WTO bound tariff rate of 11.7%. In 2023, Vietnam's average MFN applied tariff rate was 9.4%, with 17.1% for agricultural products and 8.1% for non-agricultural products.   Vietnam maintains import tariff-rate quota regimes for certain goods like salt, eggs, and sugar.   It's a dynamic situation, and the long-term implications of these tariff changes on Vietnam's economy and its trade relationship with the US are still unfolding. Businesses engaged in trade between the two countries will need to closely monitor further developments and potential negotiations.