"20% reciprocal tariff poses hurdles for Vietnamese exports to US", 17 August 2025

...although the US announced the tariff on April 2, shipments through June were largely unaffected as companies rushed to fulfill orders ahead of the official implementation. However, the impact has become clear since July, with US partners placing smaller and fewer orders.

Nguyen Manh Hung, Vice Chairman and CEO of Nafoods Group, said exports to the US...have dropped sharply. Buyers are cautious, placing limited orders while negotiating to split the 20% tariff, which prolongs transactions.

“If US consumers had to shoulder the entire tax, they would immediately reject our products. We are forced to share the cost, eroding profits to near break-even. The bigger challenge is slower cash flow due to rising inventories,” he said.

He added that if the 20% tariff remains long-term, both farmers and Vietnamese companies will face major pressure, especially as US fruits enter Vietnam tax-free, undercutting local produce.

The textile and garment sector has also seen orders slow since July. Phạm Van Viet, Chairman of Viet Thang Jean, noted that orders shipped before June 20 were delivered on time, but new contracts, especially for basic items, have stalled...