The United States has imposed a 46% tariff on Vietnamese goods, creating pressure on Taiwanese businesses to find ways to overcome.

Taiwan • Business • 04/14 04:20
The United States has imposed a 46% tariff on Vietnamese goods, creating pressure on Taiwanese businesses to find ways to overcome.

On April 2, 2025, President Trump of the United States announced the imposition of "reciprocal tariffs" on multiple countries, including Vietnam, levying a 46% import tax on goods from Vietnam, which sent shockwaves through Taiwanese businesses in Vietnam. The U.S. later announced a 90-day suspension and began trade negotiations, but the uncertainty surrounding the policy has already exerted pressure on Taiwanese businesses. Taiwanese businesses in Vietnam are responding by diversifying their markets and optimizing production processes to stay competitive.

Key Updates

04/15 06:23

US-China Trade War Intensifies: Foreign Investors Downgrade China's Economic Outlook, Nomura Overhauls Its Operations in China

In April 2025, President Trump of the United States increased tariffs on Chinese goods to 145%, and China responded with a retaliatory tariff of 125%, escalating the U.S.-China trade war. This move impacted global markets, with UBS and Goldman Sachs lowering their forecasts for China's 2025 GDP growth to 3.4% and 4%, respectively. Nomura Holdings reduced its wealth management division in China and shifted its focus to brokerage and asset management. The tariff standoff between the U.S. and China affected China's economy and the layout of foreign investments, and had profound implications for the global economy.

04/15 04:20

Lin Yongxiang, Chairman of DaJiang Biomedical, is Expanding into the U.S. Market Despite the Trend: Stabilizing Prices and Capturing Orders Amid Taiwan Stock Market Volatility, Global Expansion as a Competitive Edge

On April 7, during fluctuations in the Taiwan stock market caused by Trump's "equal tariffs" policy, Chairman Lin Yongxiang of Great Tree Biotechnology (8436) announced that prices would not increase and that the company would expand into the U.S. market. They plan to utilize manufacturing bases in the U.S., China, and Taiwan to offer order transfer and tax optimization solutions. Great Tree Biotechnology has already established manufacturing bases in these regions and has initiated a global expansion strategy to strengthen its supply chain. Lin Yongxiang's strategy includes maintaining price stability, accurately targeting the demand for order transfers, and risk management, helping Great Tree Biotechnology continue to grow amid market fluctuations.

04/15 02:22

South Korea increases support for strategic industries to 33 trillion won to mitigate risks posed by the US-China trade war.

On April 15, 2025, the South Korean government announced that in response to potential U.S. tariff policies and competitive pressures from China, it will provide an additional 7 trillion won (approximately 4.9 billion USD) to support strategic industries like semiconductors, bringing the total aid to 33 trillion won (approximately 23.1 billion USD). The plan includes infrastructure development, low-interest loans, talent development, and international cooperation, focusing on the semiconductor, display panel, battery, and biotech sectors, with the aim of strengthening South Korea's position in the global high-tech supply chain.

04/14 16:22

2025: Trump implemented the "America First" policy: The global status of the dollar is facing challenges

In 2025, President Trump of the United States promoted the "America First" policy, focusing on protectionism and economic nationalism, using tariffs and trade wars to reshape the global economic order, affecting the dollar's global status. The trade deficit widened, foreign investments pulled out, the dollar weakened, and the de-dollarization trend accelerated, creating monetary and geopolitical challenges for the United States. This article examines the policy background, the methods of implementation, and their effects on the dollar's international standing.

04/14 05:20

The United States announced the phased implementation of tariffs on electronic products and semiconductors, starting in 2025.

In April 2025, the U.S. government announced a two-step adjustment to the tariff policy for electronic products and the semiconductor industry. President Trump announced that the first step would temporarily exempt certain electronic products from high reciprocal tariffs on certain electronic products, and the second step is expected to implement exclusive tariffs specifically on semiconductors and related products within one to two months. This policy adjustment aims to promote the reshoring of industries and emphasizes considerations of national security. The exemption list, which includes computers and smartphones, significantly impacts companies like Apple and TSMC. A national security investigation may be initiated in the future to further adjust the tariff measures.

04/14 04:20

The United States has imposed a 46% tariff on Vietnamese goods, creating pressure on Taiwanese businesses to find ways to overcome.

On April 2, 2025, President Trump of the United States announced the imposition of "reciprocal tariffs" on multiple countries, including Vietnam, levying a 46% import tax on goods from Vietnam, which sent shockwaves through Taiwanese businesses in Vietnam. The U.S. later announced a 90-day suspension and began trade negotiations, but the uncertainty surrounding the policy has already exerted pressure on Taiwanese businesses. Taiwanese businesses in Vietnam are responding by diversifying their markets and optimizing production processes to stay competitive.

04/14 01:07

The Trump Administration intends to terminate duty exemptions for tech products and initiate a national security probe pursuant to Section 232.

On April 14, 2025, President Trump of the United States announced the imposition of specific tariffs on 20 technology products, including smartphones, laptops, and semiconductor chips, even though these products were recently added to a temporary tariff exemption list. U.S. Commerce Secretary Lutnick and White House economic advisor Hassett confirmed that these products will be designated as critical to national security and may face new tariffs within one to two months. The Trump administration plans to conduct a national security trade investigation under Section 232 of the Trade Expansion Act to ensure the independence and security of the U.S. technology supply chain.

04/13 23:07

US-China Tariff War Intensifies: Trump's Policy Drives Up US Bond Yields, Taiwan's Semiconductor Industry Benefits from Rush Order Effect

President Trump of the United States announced a 145% tariff on Chinese goods and imposed a 10% reciprocal tariff on several countries, leading to an escalation in the U.S.-China trade war and causing turbulence in global markets. The yield on the U.S. 10-year Treasury bond surged to 4.59%, reaching a new high for 2023. Despite uncertainties facing the tech industry, strong demand for AI is prompting American cloud service providers to speed up their orders, benefiting Taiwan's semiconductor supply chain with a wave of urgent orders. Companies such as TSMC are benefiting, and air freight space is fully booked.

04/13 22:39

Trump's Fluctuating Tariff Policy: Electronics Subject to Separate Tariffs, U.S. Postpones Tariffs on 75 Countries for 90 Days

In early April 2025, President Trump of the United States announced the implementation of "reciprocal tariffs" on multiple countries. Subsequently, on April 11, he released a list of 20 electronic products exempt from tariffs. However, Trump denied the existence of this policy, calling it "fake news," and planned to impose "semiconductor tariffs" on these products. Meanwhile, the U.S. temporarily postponed the imposition of reciprocal tariffs on 75 countries for 90 days. This policy repeatedly triggered market fluctuations, and experts warned that investment risks in Taiwan's stock market have increased.

04/13 22:06

In 2025, the US-China trade war heats up: Trump's tariff policy impacts the global tech supply chain, TSMC sees a sudden surge in urgent orders, and France proposes European Union border quotas.

In April 2025, the US-China trade war intensified as President Trump imposed tariffs as high as 145% on Chinese goods, and China retaliated by imposing a 125% tariff on American goods. The Trump administration temporarily exempted electronic products like smartphones from tariffs, but the semiconductor industry remained affected. TSMC received urgent orders from American clients, which accelerated the construction of its US plant. The French Finance Minister suggested that the EU set up border quotas to prevent a flood of cheap Chinese goods. After some fluctuations, the Taiwan stock market showed four major bullish signals, and market sentiment stabilized.

US Imposes 46% Tariff on Vietnam and Initiates 90-Day Suspension Period

On April 2, 2025, US President Trump announced the implementation of a "reciprocal tariffs" policy on multiple countries worldwide, imposing high tariffs on countries with a trade surplus with the US. Vietnam was identified as a key target, with a tariff rate as high as 46%, second only to China and Cambodia, making it the third highest US import tariff globally. This move has garnered significant attention from the Vietnamese government and business community.

After a meeting between Vietnamese Deputy Prime Minister Hu Duc Phuc and the US Trade Representative, both parties reached a consensus on April 9 to initiate trade negotiations and delay the tariff implementation for 90 days. Vietnam hopes to reduce the tariff rate to between 22% and 28% and has pledged to strengthen efforts against "trade fraud" and "transshipment abuse," particularly concerning Chinese goods being rerouted through Vietnam to the US.

Taiwanese Business Reaction: Running Production Lines by Day, Watching News by Night

Taiwanese businesses in Vietnam have reacted strongly to this policy change. Luo Shiliang, chairman of cast iron cookware manufacturer Borai Co., Ltd., stated that about 40% of the company's revenue comes from the US market, and the 46% tariff makes him feel like he's in a sauna, staying up until 3 or 4 in the morning to keep up with US news. He noted that although the 90-day suspension period provides some breathing room for businesses, it is still difficult to feel at ease.

Johnson Health Tech, a commercial fitness equipment manufacturer with a factory in Bac Ninh Province, Vietnam, admitted by General Manager Sun Qi'an that they initially thought the Vietnam-US relationship was stable and did not expect Vietnam to be subjected to such a high tariff rate. He stated that the company is currently maintaining production rhythm and personnel stability to avoid quality and supply chain disruptions due to policy fluctuations.

Diversifying Export Markets and Supply Chain Integration as Main Strategies

Facing high tariff pressure, Taiwanese businesses in Vietnam are actively adjusting their strategies. Luo Shiliang pointed out that the company is attempting to reduce the US market share from 45% to 30% and explore mid-range markets in the Middle East and Europe to diversify risks. He also mentioned that to save costs, the company is "wringing out every drop" like wringing a towel, by increasing R&D personnel and optimizing production efficiency to lower unit costs.

Sun Qi'an stated that the company will negotiate with suppliers to share costs and, if necessary, pass some costs onto consumers. He also noted that although Vietnam's tariff rate is high, it still has a relative advantage compared to China's 145% tariff, and Johnson has brand and channel advantages to respond more flexibly to market changes.

PCB and Traditional Industry Taiwanese Businesses: Factory Plans Unchanged but More Cautious

In the electronics manufacturing sector, Taiwanese PCB companies such as Zhen Ding-KY, Unimicron, Compeq, and Tripod have been actively setting up factories in Vietnam and Thailand in recent years, implementing a "China +1" strategy. Despite the US imposing a 46% tariff on Vietnam, companies stated that their factory plans remain unchanged, but future global layouts will be more cautious.

According to statistics, at least 20 major Taiwanese PCB manufacturers have established new bases in Southeast Asia. However, the alternative locations originally chosen to avoid the US-China trade war are now facing higher US tariffs, causing companies to express their frustration.

Policy Negotiations and Industry Adaptation Proceeding Simultaneously

The Vietnamese government has publicly stated that it will strictly review Chinese goods exported to the US via Vietnam and strengthen export controls on sensitive products such as semiconductors to address US concerns about "origin laundering." Meanwhile, Vietnam has also proposed to the US to reduce the tariff to between 22% and 28%, particularly concerning Chinese goods being rerouted through Vietnam to the US.

During the 90-day suspension period, Taiwanese businesses in Vietnam are coordinating with clients to ship goods in advance or transport them to warehouses in Mexico to flexibly respond to future policy changes. Some companies are also accelerating the diversification of export markets and localization of supply chains, reducing their reliance on the US market.

References

People Also Ask...

faq

With the U.S. imposing a 46% tariff on Vietnam, how should Taiwanese companies respond to this policy change?

faq

How should Taiwanese businesses respond to the U.S. imposing a 46% tariff on Vietnam as part of this policy change?

faq

The United States has imposed a 46% tariff on Vietnam. How can Taiwanese businesses leverage AI or blockchain technology to optimize their supply chains in response to this challenge?