The US trade deficit with Vietnam is the third highest, after China and Mexico

In a strategic move to ease trade tensions with Washington, Vietnam has announced significant reductions in import duties on a wide range of goods—including automobiles, liquefied natural gas (LNG), and several U.S. agricultural products. The decision comes as concerns grow over potential sweeping tariffs from the United States, with Vietnam increasingly under the spotlight due to its large trade surplus with the world’s largest economy.

Effective March 31, 2025, the revised tariff scheme will see import duties halved on certain automobiles, while LNG tariffs will drop from 5% to 2%, according to an official statement released late Monday on the Vietnamese government’s portal.

Key U.S. agricultural exports are also set to benefit. Tariffs on frozen chicken legs will be reduced from 20% to 15%, unshelled pistachios will drop from 15% to 5%, and almonds will decrease from 10% to 5%. Other products affected by the new preferential rates include fresh apples, cherries, raisins, ethanol, and various types of wood.

The tariff adjustment follows a statement from Prime Minister Pham Minh Chinh last month, in which he confirmed that Vietnam was reviewing its trade policies to promote more balanced trade with the United States.

The move is widely viewed as a proactive gesture to prevent Vietnam from being targeted in the next wave of U.S. tariffs, which President Donald Trump is expected to unveil as part of a broader protectionist push. Currently, Vietnam has the third-largest trade surplus with the U.S., trailing only China and Mexico.

“Vietnam is doing everything it can to soften the blow,” said Bruno Jaspaert, CEO of DEEP C Industrial Zones and Chairman of the European Chamber of Commerce in Vietnam. “Rather than retaliate, they give—and hope to be treated in a better way than most. But the overall expectation is that there will still be tariffs.”

The latest measures underscore Vietnam’s delicate balancing act between maintaining favorable trade relations with the U.S.—its largest export market—and managing its own economic interests amid a shifting global trade landscape. For foreign investors, the tariff cuts may offer new opportunities across key sectors, especially in agriculture, energy, and logistics, as Vietnam aims to diversify its supply chains and sustain its export-driven growth.

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Source: Vietnam Insider