 "Vietnam's exporters scramble to fulfil order surge amid 90-day tariff pause")
Exporters in Vietnam are rushing to meet a sudden surge in orders from the United States after US President Donald Trump announced a 90-day pause on his ‘reciprocal’ tariff plan, according to a report by the South China Morning Post. The pause has temporarily spared the country from 46 per cent duties that had threatened to upend its export-dependent industries. This is one of the highest import duties places on a country by the US.
Many factory owners, particularly those operating furniture and consumer goods units relocated from China, are working overtime to fulfil last-minute orders. Businesses that had seen demand dry up just weeks ago are now inundated with urgent shipments as US buyers seek to stock up ahead of any potential policy reversals by Trump.
US tariff pause sparks jump in orders
The tariff suspension has left Vietnam’s factories in a limbo. Under the earlier plan, the US announced reciprocal tariffs ranging between 10 to 50 per cent. The rates were based on the US’ trade deficit vis-a-vis its trade partners. However, even countries with which the US enjoys a trade surplus were not spared, as they were hit with a 10 per cent global baseline rate. Due to its wide trade surplus and the perception that it has become a proxy base for Chinese manufacturers avoiding direct duties, Vietnam faced one of the steepest proposed tariffs at 46 per cent. The tariffs briefly went into effect on April 9, before Trump unexpectedly announced a 90-day pause via a post on his social media platform Truth Social.
The temporary relief, however, has sparked a wave of front-loading, with exporters reporting a sharp jump in orders over the past few days. Some US clients are even travelling to Vietnam to fast-track deals and secure shipments within the limited window.
Uncertainty looms over US trade policy
The uncertainty over future trade policy has raised concerns among small and mid-sized manufacturers, many of whom had earlier moved operations from China to Vietnam during the first wave of the US-China trade war. While some businesses remain temporarily unaffected due to exemptions, fears persist that tariffs could eventually extend to their sectors.
Trump had exempted certain sectors such as semiconductors and pharma from in his reciprocal tariff order. Since then, however, his administration and the US president himself have hinted that fresh tariffs on those sectors will be announced soon.
While many countries have reached out to the United States government to begin discussion over fresh trade agreements, China has responded with retaliatory measures. President Xi Jinping has also been trying to rally nations to stand against Washington’s ‘abuse’ of tariffs and ‘bullying’.
Vietnam seeks dialogue with US, ties with China
Meanwhile, Vietnam is reportedly lobbying the US to lower the final tariff range to between 22 and 28 per cent, and has offered concessions such as reducing tariffs on US goods. The country is also intensifying checks on transshipments and increasing scrutiny on goods potentially being routed through its ports to bypass US restrictions.
Vietnam also welcomed President Xi Jinping in Hanoi this week, signing dozens of cooperation deals and encouraging further Chinese investment into Vietnam. Xi will also be visiting Cambodia and Malaysia in his first international trip this year. The visit highlights Beijing’s intent to retain economic influence in the region, even as its companies diversify production bases in response to geopolitical and trade pressures.