The DHL Express guide to US-Vietnam Tariffs in 2025

The American market has long been a powerful engine for Vietnam's export growth. In 2024 alone, Vietnam’s export turnover surged by 14.3% year-on-year to US$405.5 billion, with the US as its largest export market¹. 

However, present uncertainties like evolving trade policies and the impact of new tariffs have considerably altered trade conditions. So, if you rely heavily on exports, you’ll need to adapt your strategies to navigate these challenges successfully. 

This article will help you understand the recent changes in US-Vietnam trade and provide actionable strategies to optimize your approach, equipping you to maintain your competitive edge in the global marketplace.

Understanding the US-Vietnam trade landscape in 2025

Amidst protectionist policies by the US, US-Vietnam trade has been marked by rapid changes and intense negotiations in 2025. Understanding these key shifts is the first step towards adapting your export strategy:

• Steel and aluminum tariffs: A 25% tariff on all steel and aluminum imports was imposed by the US for all countries and regions on 12 March 2025⁴.
• Initial reciprocal tariffs: In April 2025, the US announced a universal 10% ‘minimum base tariff’, along with a 46% reciprocal tariff rate on all Vietnamese goods, one of the highest rates placed on any country⁴.
• 90-day tariff truce: The country-specific tariffs, including the 46% rate for Vietnam, were initially paused for 90 days, while the ‘universal’ 10% rate remained6.
• Final reciprocal tariffs: Following negotiations, a 20% tariff rate on Vietnam’s goods entering the US took effect on 7 August 2025². In addition, a 40% duty on transshipments from third countries was imposed to target products that were minimally processed in Vietnam to evade tariffs².
• Hike in steel and aluminum tariffs: On 19 August 2025, the US expanded its tariffs on over 400 products with steel and aluminum content, such as wind turbines, mobile cranes, bulldozers, and railcars, to 50%³.

Impacts on Vietnam’s exports to the US

The increased US tariffs on Vietnam were intended to revitalize American domestic industries and address trade imbalances. However, this trade policy could strain profit margins and potentially reduce order volumes for you, particularly if your sector heavily relies on the US market, such as machinery, electronics, and wood products1.

While the 20% tariff rate is a significant relief from the initial 46% threat, it still presents a challenge. As such, it’s essential to leverage other competitive advantages to stay afloat, such as2:

• Vietnam’s strategic location near China, which facilitates the flow of raw materials and components
• Developing infrastructure and a skilled workforce
• Incentives to promote the development of the private sector and high-tech industries
• A considerable number of Free Trade Agreements (FTAs) with global regions.

If these strengths are successfully leveraged, some experts have suggested that the new trade climate could safeguard Vietnam's export-oriented growth strategy and solidify its position as a leading alternative in Asia’s supply chain diversification2. 

Proactive measures from Hanoi to address trade imbalances

After over two months of intensive negotiations between Hanoi and the US, Vietnam has become the third country to announce a tariff agreement with the US, following the UK and China2. These negotiations yielded the reduction of tariffs on products exported from Vietnam to the US from the initial 46% to 20%, allowing for a more predictable and competitive market presence2. 

Additionally, while Vietnam seeks to strengthen bilateral trade, it is also pushing for self-reliance to mitigate the adverse effects of US tariff pressure. To this end, it will be: 

• Stepping up efforts to restructure its manufacturing sector while advancing sustainable development in sectors like agriculture, forestry, and fisheries5.
• Advocating for US recognition as a market economy, which would help alleviate high anti-dumping duties and bolster its trade position5. 

Adapting your export strategy

As trade uncertainties evolve, it’s crucial to stay informed about bilateral and domestic developments to maintain a successful export business strategy. Here are several strategies to help you survive and thrive.

Leverage Vietnam’s free trade agreements (FTAs)

Vietnam’s Free Trade Agreements (FTAs) offer multiple pathways to diversify your export markets beyond the US. 

With reduced or eliminated tariffs and streamlined customs procedures, these FTAs enable you to venture into regions like the EU, Japan, South Korea, and other ASEAN countries more easily. In turn, this diversification reduces your business’s reliance on any single market, thereby strengthening its economic resilience.

• Vietnam-EU Free Trade Agreement (EVFTA): The EVFTA offers Vietnamese exporters tariff elimination on almost 99% of goods traded with the European Union, providing unparalleled access to one of the world's largest consumer markets7.
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Under the CPTPP, member countries, including Australia, Canada, Japan, Mexico, New Zealand, Brunei, Malaysia, and Singapore, will eliminate import duties of 97% to 100% tariff lines for goods originating from Vietnam8.
• Regional Comprehensive Economic Partnership (RCEP): The RCEP links Vietnam with the ten ASEAN countries, plus Australia, China, Japan, New Zealand, and South Korea, aiming to facilitate the expansion of regional trade and investment9.
• Vietnam-Korea Free Trade Agreement (VKFTA): This bilateral agreement grants improved market access to South Korea compared to the ASEAN-Korea FTA (AKFTA), which still remains in effect. Under the VKFTA, Korea further removed 506 tariff lines for Vietnam, while Vietnam further removed 265 tariff lines for Korea10. 

Cultivate supply chain resilience

Supply chain resilience is your business's ability to withstand or recover quickly from disruptions, such as sudden tariff hikes. To achieve such resilience, consider diversification or domestic sourcing for raw materials and components. By doing so, you reduce your reliance on vulnerable international supply lines. 

For example, with the escalating export tariff rates on Chinese goods, many companies are increasingly seeking alternatives to China for their supplies. As such, relying solely on China for your supplies would likely put you at a disadvantage.

Instead, bolster your sourcing and manufacturing capabilities to maintain your supply sources and keep operations moving. You can also position yourself as an attractive partner to other producers, helping you solidify your position in the global supply chain.

Innovate and value-add

As export tariffs rise, a compelling export business strategy is to invest in producing high-quality and unique offerings to differentiate yourself in a competitive market. 

These efforts help you justify premium pricing and attract customers who value more than just cost. Here are five tips to make your products and services more compelling and competitive:

• Enhance product quality: Invest in better materials or production processes to provide buyers with more reliable and durable goods that stand out from the competition.
• Focus on unique designs: Develop exclusive, original product designs that cannot be found elsewhere. This allows you to carve out a distinct niche in the marketplace.
• Adopt sustainable practices: Implement eco-friendly production methods or use recycled materials. This appeals to a growing segment of environmentally conscious consumers globally.
• Bundle products strategically: Group complementary items into attractive bundles to increase the perceived value of your offering and provide an upsell opportunity.
• Provide exceptional service: Offer superior customer support and a seamless purchasing experience to build strong relationships with your audience. For example, by working with DHL Express to provide swift product deliveries and proactive updates, you enhance the customer experience and foster long-term loyalty. 

Export confidently with DHL Express Vietnam

An adaptable export business strategy is crucial to sustaining growth while operating in an uncertain trade landscape. By proactively diversifying and leveraging your competitive advantages, you can respond more effectively to unforeseen tariff challenges.

Furthermore, the right partners also matter. As you navigate trade complexities and supply chain disruptions, a reliable international shipping partner like DHL Express can significantly streamline processes for you. 

For instance, our expertise in customs-related matters can help ensure your goods move smoothly across borders, while our extensive global network enhances overseas shipping efficiency.

So, leverage our professional support and robust network to drive export success! Open a business account with DHL Express and unlock your full export potential today.