On February 1, 2025, President Trump signed an executive order imposing import tariffs on goods from Canada, Mexico, and China, citing the national emergency of fentanyl and illegal immigration.
1. Tariff Measures Applied
• 25% tariff on goods imported from Canada and Mexico.
• 10% tariff on goods imported from China.
• Energy products from Canada enjoy a preferential tariff of 10%, while the same item from Mexico is still subject to the full tariff of 25%.
2. Retaliatory moves from other countries
• Canada: Imposed a retaliatory tariff of 25% on $155 billion worth of US goods, including everyday consumer goods such as beer, wine, fruit, fruit juice, clothing, and footwear. Tariffs on $30 billion worth of US goods will take effect on February 4, and the remainder after 21 days.
• Mexico: Imposing similar retaliatory tariffs on US goods, while strengthening border controls and cooperating with the US in preventing drug smuggling and illegal immigration.
• China: Imposing a 10% tariff on crude oil, agricultural machinery and cars imported from the US, and a 15% tariff on coal and liquefied natural gas. In addition, China has imposed export controls on rare earth metals and launched an antitrust investigation into Google.
• EU: Criticizing US tariffs, warning of retaliation if targeted.
3. Impact on the Global Economy and Vietnam
• Global economy: International stock markets reacted negatively, the yuan, Canadian dollar and Mexican peso fell. Analysts warn that tariffs could push Canada and Mexico into recession and increase unemployment.
• Vietnam: Could be affected by the volatility, but there are also opportunities to increase exports to the US, especially in the textile, footwear and electronics sectors. However, supply chain disruptions and exchange rate fluctuations are new challenges.
Vietnam needs to closely monitor the situation, assess the impact and adjust its economic strategy to take advantage of opportunities and minimize risks.
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