Association proposes cutting import duties on US seafood to zero

The Vietnam Association of Seafood Exporters and Producers (VASEP) has expressed its hope that Vietnam will slash its import tariffs on U.S. seafood to zero from the current 3-10%.

The association raised the proposal to the government and relevant authorities after President Donald Trump on Wednesday announced that he will levy hefty 46% duties on imports from Vietnam, effective April 9, as part of a new wave of global impositions.

The tax for Vietnam is among the highest, only after Laos (48%) and Madagascar (47%).

VASEP said it hopes that the U.S. will not apply the 46% tariff on all seafood products, but instead consider it on a case-by-case basis.

In return, Vietnam should cut its import tax on U.S. seafood to zero, especially for items with low volumes such as shrimp and tuna, it said.

The association called on the government and relevant ministries to promptly negotiate with the U.S. to agree on the timing of the new import tariff, while seeking ways to adjust the tax to a more reasonable level.

The U.S. has remained a major, traditional market for Vietnamese seafood, with export revenue reaching $2 billion each year, accounting for one-fifth of Vietnam’s total seafood export value.

Notably, 70% of the exports are farmed seafood, underpinning the livelihoods of hundreds of thousands of farmers. The remaining 30% is wild-caught, supporting hundreds of thousands of fishermen.

The U.S. is also the largest importer of Vietnamese shrimp and tuna, and the second-largest for pangasius.

More than 400 Vietnamese companies are currently exporting seafood to the U.S. and plan to expand shipments with high-value orders.

Amid intense competition and anti-dumping pressure, most firms have to use the DDP (Delivered Duty Paid) method, covering all transportation, insurance, and pre-delivery taxes while waiting for payment from U.S. buyers.

This puts businesses at significant risk, especially with the U.S. imposing massive 46% tariffs.

Tran Van Linh, chairman of Thuan Phuoc Seafood and Trading Corporation in the central city of Da Nang, said the U.S. has long been a tough market for Vietnam's shrimp sector due to the fierce competition from Ecuador, India, and Indonesia.

Additionally, the U.S. has levied anti-dumping and countervailing duties on Vietnam. As a result, shrimp exports to the U.S. are mainly to maintain market share rather than generating profit.

“The 46% reciprocal tariff would make it impossible for Vietnam to export, no matter the effort. No one has the financial capacity to cover such losses,” he said.

Linh described it as a “warning shot” from the U.S., prompting its trade partners to reassess longstanding tariffs imposed on American goods.

He suggested that Vietnam, an open economy driven by strong exports, review and adjust its policies, making them more suitable. "The government should negotiate with the U.S. to lower tariffs and provide support for businesses."

According to VASEP, around 37,500 tons of seafood are currently en route to the U.S., with an additional 31,500 tons expected to be exported in April and May.

Moreover, signed orders for the year total 38,500 tons. If U.S. customs enforces the new tax from April 9, all shipments in transit will face a 46% tariff, up from the previous 0% or 5.5-7%.

As President Trump’s tariff decision looms, Deputy Prime Minister Ho Duc Phoc, along with leaders of various ministries and agencies, held a meeting with associations, businesses, and diplomatic representatives on Friday to discuss solutions.

The same day, Party chief To Lam held a phone call with President Trump, during which the Vietnamese leader affirmed that Vietnam is willing to negotiate with the U.S. to cut import tariffs on U.S. goods down to zero. Lam proposed the U.S. do the same for Vietnamese exports.

He added that Vietnam seeks to increase imports from the U.S. and will encourage and create favourable conditions for American businesses to further invest in the country.

In the morning of April 4 (Washington D.C. time), President Trump wrote on social network Truth Social about his phone call with Party General Secretary To Lam, saying the talk was “very productive”.

He quoted Lam as saying "Vietnam wants to cut their tariffs down to zero if they are able to make an agreement with the U.S."

"I thanked him on behalf of our country, and said I look forward to a meeting in the near future," Trump added.