Vietnam Faces Tariff Risk Amid Growing Trade Surplus with US

Vietnam is at risk of becoming the next target of tariffs under the next US government as data indicates that its trade surplus with the US is growing, as per analysts and industry executives.

Only China, the EU, and Mexico have a greater commercial surplus with the US than the communist-run nation, which is home to major industrial activities of US multinational corporations like Apple Inc., Google, Nike Inc., and Intel Corp.

The United States' deficit with Vietnam reached US$102 billion in the first 10 months of this year, according to trade data disclosed on the subject. This represents a nearly 20 percent rise over the same period last year.

Samsung Electronics Co. of South Korea is a significant exporter of cellphones and other electronics from Vietnam to the United States.

The appointment of Peter Navarro as Donald Trump's senior advisor for trade and manufacturing is another indication that tariffs may be imposed on Vietnam. Many Washington policymakers view Navarro's Project 2025 recommendations as a model for the new Donald Trump administration, and he has stated that tariffs on Vietnam would be a very effective way to reduce the US trade deficit.

“Navarro has been a well-known expert under the [Donald] Trump administration for increasing the size of the American manufacturing sector, imposing high tariffs, and repatriating global supply chains,” said Nguyen Hung, a specialist in supply chains at RMIT University Vietnam.