Vietnam’s Strategic Response to U.S. Tariff Policies: Trade Decrees and Market Diversification
Vietnam responds to U.S. tariff threats in 2025 by cutting key import tariffs and diversifying export markets beyond traditional partners. With 19 free trade agreements, it targets growth in emerging regions like the Middle East, India, and Africa—boosting sectors like agriculture and textiles while investing in infrastructure and skills for long-term resilience.
6/6/20251 min read
In response to U.S. tariff threats in 2025, Vietnam implemented key policy measures to protect its export economy. Decree 73, effective March 31, 2025, reduced Most Favored Nation (MFN) tariff rates on essential imports such as automobiles, agricultural inputs, and industrial materials. This aims to improve Vietnam’s trade competitiveness and strengthen supply chains with major partners including the U.S., China, and Japan.
Vietnam is also pursuing export market diversification to reduce dependency on any single country. The government promotes expanding trade into emerging markets like the Middle East, India, and Africa through its network of 19 free trade agreements. Focus sectors include agriculture, textiles, and consumer goods, supported by trade missions, export incentives, and digital market development.
These strategies aim to mitigate geopolitical risks, sustain economic growth, and build resilient trade infrastructure. Continued investment in logistics, infrastructure, and workforce skills development is critical to these goals.