U.S. imposes 46% tariffs: Businesses shift direction, seek opportunities with new giants India, Middle East...
- Hieu Do
- Apr 10
- 4 min read
The diversification of markets and shifting exports to other potential destinations such as India, China, and the Middle East is a key topic being discussed among businesses and trade associations as a response to the new U.S. tariff of up to 46%.
At noon on April 9 (Vietnam time), the U.S. officially implemented countervailing duties on imports from countries around the world. Under President Donald Trump’s administration, no reductions or exceptions were applied.
Negotiations are still open, but Vietnam is among the countries subject to the highest tariffs—46%—posing major challenges for businesses. This forces companies to change business strategies and restructure operations to mitigate losses.
Can Vietnam maintain export levels from 2024?
Speaking with Tuổi Trẻ Online, Mr. Nguyễn Tuấn Việt, Director of VIETGO Export Promotion Co., Ltd.—a consulting and export order connection agency—believes there is still room for Vietnamese businesses to maneuver despite the 46% tariff from the U.S.
He explained that Vietnam’s export turnover to the U.S. in 2024 was USD 119 billion. With a targeted growth of over 10%, the 2025 forecast would have reached over USD 135 billion without the new tariffs. As of Q1 2025, export turnover to the U.S. had already reached USD 31 billion, a 10% increase year-on-year.
While this tariff is viewed negatively—especially as Vietnam faces one of the highest rates globally, even higher than competitors—Mr. Việt pointed out that buyers cannot immediately shift suppliers, especially when such wide-scale tariffs could disrupt global supply chains.
“It takes at least 2–3 months for buyers to source new suppliers and finalize deals. So for at least one more quarter, Vietnam can maintain around USD 15–20 billion in exports to the U.S. During that time, we must act quickly to shift strategies and develop long-term responses,” he said.
With a 10–12% growth target in export turnover this year (equivalent to an additional USD 50–60 billion), Vietnam could still match last year’s export levels even if the U.S. market becomes less favorable. On the bright side, many new markets are available for expansion—not just the U.S.
Rapidly expanding markets and seeking long-term responses
As a company handling 1,200–1,500 export orders per month, Mr. Việt notes that many exporters still focus heavily on high-standard markets like the U.S. and EU.
Meanwhile, huge markets with lower standards—such as India, China, and the Middle East—are still underexplored. These “big eaters,” as he calls them, include India and China with a combined 3 billion people, accounting for 45% of the world’s population. They have fewer trade barriers, except for China's requirements on regional planting codes.
Additionally, countries like Thailand and Myanmar—recently hit by earthquakes—will have reconstruction needs, opening up opportunities in construction materials, furniture, food, textiles, and consumer goods. Vietnam already has trade agreements with these ASEAN countries, which can help Vietnamese goods penetrate these markets.
The Russia-Ukraine war is also expected to ease, possibly ending by late 2025. Post-war reconstruction will create new demand, estimated at USD 400–500 billion. Vietnam can contribute significantly, especially in sectors like textiles, leather shoes, furniture, seafood, and agriculture.
Mr. Mạc Quốc Anh, Vice Chairman of the Hanoi Association of Small and Medium Enterprises, said that the U.S. tariff imposition will force businesses to rethink their market strategies and product structures to reduce dependence on a single market.
Alongside technology upgrades and optimized production to improve competitiveness—not just relying on cheap labor—businesses are also shifting to a “dual-market” approach.
That is, more companies are expanding into alternative regions (EU, Japan, Middle East) to mitigate risks and diversify their supply chains. Many have begun establishing or expanding partnerships in these potential markets, moving beyond just the U.S.
“Some businesses see this as an opportunity to restructure their apparatus and standardize processes according to international standards, such as strict quality standards for the European or Japanese markets. Some businesses also increase cooperation with domestic suppliers or from partners in the FTA bloc that Vietnam has signed. Thanks to that, intermediate import costs are reduced, limiting input price fluctuations to increase competitiveness,” Mr. Quốc Anh said.
Credit: Ngoc An, Tuoitre.vn
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