NEW U.S. TARIFF POLICY: AN OPPORTUNITY FOR VIETNAMESE GOODS IN THE EU

1. New U.S. Tariff Policy – Global Impact

On April 2, 2025, U.S. President Donald Trump announced a sweeping set of new tariffs affecting imports from over 100 countries. Vietnam is among the nations facing the highest tariffs—up to 46%—alongside China, Cambodia, Indonesia, and Myanmar. Meanwhile, the European Union (EU) is also subject to a 20% tariff rate, creating major disruptions in the global trade landscape.

The consequences of this policy extend far beyond the United States. The weakened U.S. dollar, rising import costs, and reduced purchasing power of American consumers are reshaping global trade flows. Many countries affected by the new tariffs are actively seeking to reposition their supply chains—placing the EU in the spotlight as a strategic alternative.

2. A Window of Opportunity for Vietnamese Goods in the EU

2.1. Exchange Rates Favor Vietnamese Exports

According to economic experts, a weakened U.S. dollar coupled with a strengthening Swedish krona is giving Vietnamese exports a competitive edge in the EU market. With the current exchange rate at 9.85 SEK/USD—the highest since June 2022—Vietnamese goods priced in U.S. dollars are becoming more attractive to EU consumers.

To fully capitalize on this advantage, Vietnamese enterprises must maintain price stability and avoid sudden increases driven by fluctuating input costs. Sectors with low profit margins such as textiles, footwear, seafood, and wood products should adopt prudent pricing strategies to stay competitive.

2.2. Intensifying Regional Competition

As access to the U.S. market becomes more limited, many Asian countries—such as China, Bangladesh, and Cambodia—are expected to shift their export focus to the EU. This will heighten competitive pressure on Vietnamese goods, not only in terms of pricing but also regarding quality standards, delivery timelines, and traceability.

Notably, China may expand its presence in electronics and household appliances, while Bangladesh and Cambodia strengthen their foothold in low-cost textile exports. Vietnamese businesses must therefore emphasize product quality and improve compliance with international standards to maintain their market position.

3. EVFTA – A Strategic Advantage for Vietnamese Products

Amid rising protectionism, the EU–Vietnam Free Trade Agreement (EVFTA) serves as a crucial mechanism for Vietnamese enterprises to sustain and expand market share in Europe. Key sectors benefiting from the agreement include:

Textiles and Footwear: Tariff reductions provide a pricing advantage over non-EVFTA countries.
Seafood and Processed Agricultural Products: High demand in the EU, provided traceability and food safety certifications are in place.
Wood Products and Handicrafts: The EU favors sustainably sourced products with clear origin certification.
Electrical and Electronic Equipment: EVFTA offers an edge in competing with major global suppliers.

In addition, the EU’s growing emphasis on sustainable consumption requires Vietnamese exporters to invest in certifications such as eco-labels and carbon footprint verification, enhancing their credibility and appeal to potential buyers.

4. A Strategy to Reposition Vietnamese Exports

To seize opportunities arising from the U.S. tariff policy changes, Vietnamese businesses should adopt a long-term strategy:

Shift from price-based competition to a focus on quality and added value.
Invest in traceability systems and international certifications to meet EU standards.
Maximize EVFTA benefits to reduce costs and increase trade advantages.
Strengthen production capabilities and optimize supply chains to ensure timely deliveries.

5. Conclusion

The new U.S. tariff policy poses significant challenges, but it also opens doors for Vietnamese exporters to reduce dependence on the U.S. market, diversify export channels, and enhance their presence in the EU. By leveraging EVFTA benefits and implementing effective strategic adjustments, Vietnamese products can not only weather the storm but also rise to new heights on the global trade map—affirming their value through quality, sustainability, and traceability.

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