The United States' 46% tariff on Vietnam has taken effect, putting pressure on Taiwanese businesses and the garment industry, prompting the Vietnamese government to launch diplomatic efforts.

On April 9, 2025, the United States implemented a 46% tariff on Vietnamese goods, affecting Vietnam's export economy, particularly impacting industries like garments, furniture, and toys. Taiwanese businesses with factories in Vietnam, such as Eclat and Makalot, are under pressure due to reduced orders. Vietnam's Deputy Prime Minister, Ho Duc Phuc, traveled to the U.S. to negotiate, expressing a willingness to reduce tariffs on U.S. goods to zero. A Reuters/Ipsos poll shows that 57% of Americans oppose this policy, fearing it will increase consumer goods prices.

Details and Effective Date of U.S. Tariff Policy

According to guidelines released by the U.S. Customs and Border Protection (CBP), President Trump signed an executive order on April 3, 2025, to implement a "reciprocal tariff" on countries with significant trade surpluses with the U.S. The tariff rate on Vietnam is set at 46% and will officially take effect at 12:01 AM Eastern Time on April 9. This rate applies to most Vietnamese-made goods unless specific exemption conditions are met.

Impact on Taiwanese Businesses and Industries

Taiwanese businesses with factories in Vietnam are the first to bear the brunt. Wang Kunsheng, a Taiwanese businessman in Haiphong, Vietnam, stated that 100% of his party paper doll products are exported to the U.S., and after the tariffs take effect, importers have asked manufacturers to share part of the tax burden. He noted, "The company has already stopped importing production materials, and if the tariff cannot be reduced to 10% to 15%, orders may decrease by more than 30%, inevitably leading to layoffs or reduced working hours."

Another Taiwanese businessman, Lin Yitang, revealed that 10% of his toy products are sold to the U.S., and customers have requested a halt in shipments. He admitted that he is not optimistic about the negotiation prospects, believing that Vietnam has limited leverage and is unlikely to secure concessions from the U.S. in the short term.

In the furniture industry, members of the Vietnam Taiwan Furniture Alliance Association pointed out that 30% of orders have been requested to be suspended by buyers, and some factories have begun implementing one unpaid day off per week. Nevertheless, some industry players remain cautious, considering this a short-term political maneuver.

Apparel Industry Response Strategies

Taiwanese apparel giants Eclat and Makalot have significant production capacity in Vietnam, accounting for 60% and 37% of their total capacity, respectively. Facing the high 46% tariff, both companies stated that under FOB (Freight on Board) contract terms, the tariff is borne by brand customers, and shipments and production are currently normal.

Eclat noted that it accelerated shipments before the tariff took effect and coordinated with customers to pull in goods early. Makalot stated that it does not bear additional tariff costs for first-half orders, and further communication with customers is needed for second-half orders. Guanglong assessed that although the U.S. market accounts for less than 40% of its revenue, it is closely monitoring negotiation progress and considering assisting customers in sharing costs.

U.S. Public Reaction

According to a national poll conducted by Reuters and Ipsos, which concluded on April 6, 57% of American respondents oppose the newly implemented reciprocal tariff policy, including 25% of those who identify as Republicans. As many as 73% of respondents expect prices of everyday consumer goods to rise in the next six months, with only 4% believing prices will decrease. The survey interviewed 1,027 American adults, with a margin of error of plus or minus 3 percentage points.

Vietnamese Government's Response Measures

Facing a severe blow to exports and a continuous stock market decline, the Vietnamese government quickly launched diplomatic actions. Deputy Prime Minister Ho Duc Phuc held talks with U.S. Treasury Secretary Besent at 4 PM Eastern Time on April 9 and is scheduled to meet with Commerce Secretary Lutnick on the 10th. Additionally, he will meet with senior executives from American companies such as Boeing, SpaceX, and Apple to seek corporate support.

The Vietnamese government has expressed to the U.S. its willingness to reduce tariffs on American goods to zero, hoping to exchange for a delay or reduction in tariffs on Vietnam. Data from the Vietnamese Ministry of Industry and Trade shows that Vietnam's exports to the U.S. reached $142 billion in 2024, accounting for about 30% of its GDP, with a trade surplus of $119 billion.

Stock Market and Export Data Reflect Pressure

The Vietnamese stock market has been declining continuously since April 2, with the VN Index falling another 3.4% at the close on the 9th, down 18% from its March high, nearing bear market territory. VnExpress reported that export-oriented industries such as textiles, footwear, furniture, electronics, and seafood are the hardest hit by this tariff policy.

According to The Investor, the U.S. is Vietnam's largest export market for textiles and apparel, accounting for 40% in 2024, far exceeding other markets such as Japan, the EU, South Korea, and China. U.S. retailers have begun delaying orders, with costs rising by 30% to 40%.

U.S. Brands and Supply Chain Connections

Many American apparel brands heavily rely on Vietnamese manufacturing. Nike's production in Vietnam accounts for 51% of its global footwear output, with apparel accounting for more than a quarter. Adidas sources 39% of its footwear and 18% of its apparel from Vietnam. American apparel groups such as Deckers Brands and VF Corporation also have extensive supply chain partnerships in Vietnam.

References

• 越南副總理將會美財長 盼達協議降關稅 | 國際焦點 | 國際 | 經濟日報
• 美對越南課46%關稅 木製家具台廠放無薪假：3成訂單暫停生產 | 外匯市場 | 金融 | 經濟日報
• 越南台商：談判前景不明 關稅壓力下恐遭砍單須裁員 | 產業熱點 | 產業 | 經濟日報
• 對等關稅上路首日 成衣廠：接單生產一切正常
• 對等關稅上路首日 成衣廠：接單生產一切正常
• 越南提0關稅川普仍不滿意 「越南製造」恐成耐吉、愛迪達等致命傷
• 路透最新民調 美逾五成民眾反對對等關稅 | 美國新聞 | 國際 | 經濟日報
• US Customs and Border Protection Issues Guidance on Reciprocal Tariffs
• How Vietnam industries to be affected by President Trump tariffs
• Vietnam faces a 46% Tariff as the US imposes in 2025