US and Vietnamese Businesses Urge Trump to Delay 46% Tariffs, Citing Economic Fallout

As the Trump administration prepares to enforce a steep 46% tariff on Vietnamese imports, both U.S. and Vietnamese business communities are calling for an immediate delay, warning of severe economic consequences and strained bilateral relations.

In a joint appeal to U.S. Commerce Secretary Howard Lutnick, the Vietnam Chamber of Commerce and Industry (VCCI) and the American Chamber of Commerce (AmCham) in Hanoi expressed alarm at the proposed tariff, which is scheduled to take effect this Wednesday.

Describing the move as "shockingly high," the letter urges reconsideration, noting that punitive tariffs would damage commercial ties and harm consumers on both sides of the Pacific.

"Lower tariffs for products coming into Vietnam, and for goods reaching the American consumer, is what will help U.S. companies, the economy, and consumers," the statement read. "Higher tariffs will not."

Tariff Threat Casts Shadow Over Growing Trade Ties

Vietnam, a key manufacturing hub for global brands and one of Southeast Asia’s fastest-growing economies, recorded a $123 billion trade surplus with the United States in 2024—making the U.S. its largest export destination.

The looming 46% levy has alarmed businesses that rely heavily on Vietnamese manufacturing, including electronics, textiles, and consumer goods sectors. Companies fear that such a drastic tariff would lead to price hikes, supply chain disruptions, and potential job losses on both ends.

Diplomatic Dialogue Underway

Following the backlash, President Donald Trump and Vietnamese President To Lam held a phone call on Friday, which both leaders described as "very productive." They agreed to open formal discussions aimed at potentially rolling back or modifying the tariff terms.

While no deal has been reached, the dialogue offers a possible off-ramp from escalating trade tensions between the two nations.

The tariff is part of a broader set of measures under Trump’s renewed push to balance America's trade relationships by targeting countries with significant surpluses. However, critics argue the approach risks alienating key economic partners and undermining American business interests abroad.

A Critical Week Ahead

With the deadline fast approaching, businesses are watching closely. Industry leaders hope that a compromise can be reached that preserves economic cooperation between the U.S. and Vietnam—a relationship that has grown significantly in recent years as companies diversify away from China.

In the meantime, both AmCham and VCCI are intensifying lobbying efforts in Washington to delay or soften the impact of the new tariff.