Vietnam cuts US fruit tariffs as trade dispute grows

VIETNAM – Vietnam has reduced tariffs on several US fruit and nut products in a move to cool tensions with the Trump administration, which recently enforced a 46 per cent tariff on Vietnamese goods entering the United States.

On 31 March, the Vietnamese government issued a decree lowering tariffs on US apples from 8 per cent to 5 per cent, cherries from 10 per cent to 5 per cent, shelled almonds from 10 per cent to 5 per cent, and inshell pistachios from 15 per cent to 5 per cent.

The decision comes as both countries attempt to avoid further strain on trade relations that have steadily grown over the past decade.

Speaking on 7 April, Vietnam’s Prime Minister Pham Minh Chinh said his country would increase purchases of US goods and requested a 45-day delay in the new tariffs.

“Vietnam wants to negotiate with the US side for balanced and sustainable trade, in line with the interests of the two sides,” he said in an official statement.

However, Washington responded with skepticism. White House trade advisor Peter Navarro told CNBC that the Vietnamese offer to reduce tariffs would not affect the administration’s decision.

“Let’s take Vietnam. When they come to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the nontariff cheating that matters,” Navarro said.

Tariffs take effect despite pleas

At midnight EST on 9 April, the new US tariffs were implemented as planned, including the 46 per cent tariff on Vietnamese imports. These measures have added pressure to an already delicate trade relationship.

Despite the setback, Vietnam has signaled that it will keep negotiating. According to Reuters, the country’s deputy Prime Minister Ho Duc Phoc is scheduled to meet US Treasury Secretary Scott Bessent on 9 April to continue talks.

Trade data shows just how important this relationship has become. In 2024, the US exported US$126.48 million worth of fresh fruit to Vietnam. Over the past decade, this sector has grown by 115 per cent.

Tree nuts remain a major product category, with exports valued at US$392.7 million. In total, Vietnam imported US$32 billion worth of agricultural goods globally in 2023, with the US among its top suppliers.

Vietnam has become an attractive market for US fruit exporters, particularly as demand grows for tropical fruits such as dragon fruit, mango, and lychee in the US. Still, strict import rules in the United States, especially concerning food safety and plant health, continue to challenge Vietnamese exporters.

As talks continue, both sides appear committed to finding common ground. The coming weeks will determine whether Vietnam’s tariff cuts are enough to prompt any softening of US trade policies. For now, exporters and importers on both sides must wait to see how negotiations unfold.

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