President Trump says no tariff exception for electronics

By Chau Anh
Mon, April 14, 2025 | 4:44 pm GMT+7

U.S. President Donald Trump wrote in a Truth Social post on Sunday that “there was no Tariff ‘exception’ announced on Friday”, saying electronics products are "moving to a different tariff ‘bucket’”.

Vietnam's exports of computers, electronic products, and components to the US reach over $7.4 billion in Q1/2025, up 48.2% year-on-year. Photo courtesy of Dau tu (Investment) newspaper

Vietnam's exports of computers, electronic products, and components to the US reach over $7.4 billion in Q1/2025, up 48.2% year-on-year. Photo courtesy of Dau tu (Investment) newspaper

Trump said the U.S. “is taking a look at semiconductors and the whole electronics supply chain in the upcoming national security tariff investigations”.

“These products are subject to the existing 20% Fentanyl Tariffs,” he said, stressing “nobody is getting ‘of the hook’ for the unfair trade balances”.

Commerce Secretary Howard Lutnick told ABC News that those items would be subject to new semiconductor tariffs that will likely come in a month or two. These tariffs are separate from the reciprocal tariff policy announced by President Trump earlier this month.

“So what President Donald Trump's doing is he's saying they're exempt from the reciprocal tariffs, but they're included in the semiconductor tariffs," he explained.

The new tariffs would drive manufacturing back to the U.S., he predicted, noting these products are of national security importance and need to be made in America.

Trump on April 2 announced a new wave of global impositions. However, on April 9, he dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days. The 90-day reprieve is applied to nearly 90 nations except for China.

According to a notice from the U.S. Customs and Border Protection on Friday (April 11), electronics imported to the U.S. will be exempt from Trump’s reciprocal tariffs.

Smartphones, computers, solar cells, flat-panel TV displays and semiconductor-based storage devices, are among the exempted products. The move is seen as favorable for tech giants such as Apple, Samsung, HP, Dell Technologies, and Microsoft, which manufacture electronic products outside the U.S.

In response, China’s Ministry of Commerce described the U.S. tariff exemption as “a small step” and urged the U.S. to completely abolish the reciprocal tariffs. Currently, the U.S. imposes reciprocal tariffs of 125% on Chinese goods.

U.S. remains Vietnam’s biggest electronics buyer

In Q1, the group of computers, electronic products, and components was the largest contributor to Vietnam's total export value, reaching $21.1 billion, up 29.2% year-on-year. The U.S. was Vietnam’s largest importer of these items.

Exports of these items to the U.S. exceeded $7.4 billion in Q1, up 48.2% compared to the same period last year. This also represented Vietnam's largest export category to the U.S., accounting for 23.8% of the Southeast Asian country’s total export value.

The General Statistics Office (GSO) reported that the U.S. was Vietnam’s largest export market in Q1, with export value hitting $31.4 billion.

In the first two months of the year, six export categories to the U.S. recorded revenues of at least $1 billion. Notably, computers, electronic products, and components led with $4.33 billion, up 33.7% year-on-year. Phones and components brought home $1.95 billion, down 15.4%.

In the January-March period, Vietnam ran a trade surplus of $27.3 billion with the U.S., up 22.1% from the same period last year.

The country has been seen as a manufacturing hub in the global supply chain, attracting major technology players such as Samsung and Apple.

South Korean giant Samsung Electronics had invested $23.2 billion in Vietnam by mid February this year, making it the largest foreign investor in the country. The number of Vietnamese vendors in Samsung Vietnam ecosystem had reached 306. Samsung’s latest investment in Vietnam was SDV pouring $1.2 billion in making displays in Bac Ninh province.

In 2024, Samsung Vietnam earned a revenue of $62.5 billion, including an export income of $54.4 billion.

Meanwhile, Apple had spent nearly VND400 trillion ($15.49 billion) since 2019 via supply chains in Vietnam, and more than doubled annual spending in the country during the same period, CEO Tim Cook said in April 2024.

With over 70 factories of Apple suppliers, over 5,000 authorized stores, and 40 distribution partners, Apple had generated jobs for about 200,000 workers in Vietnam, he added.

South Korean chaebol LG’s key plants in Vietnam, namely LG Innotek Vietnam Hai Phong, LG Electronics Vietnam Hai Phong, and LG Display Vietnam Hai Phong, recorded a total revenue of KRW14,987 billion ($10.3 billion) in 2024, up 9.63% year-on-year.

The GSO said the electronics industry accounts for 17.8% of Vietnam’s total industrial sector, with production largely focused on electronic products, computers, and optical devices.

Vietnam and the U.S. have agreed to start negotiations on a bilateral trade deal that will cover tax issues, hours after President Trump announced a 90-day pause on reciprocal tariffs on April 9.

Comments (0)
  • Read More
New Vietnam-China int'l road transport route opens

New Vietnam-China int'l road transport route opens

Convoys carrying electronic components, fresh vegetables, and daily necessities departed simultaneously from Nanning in south China's Guangxi Zhuang Autonomous Region and Kunming in southwest China's Yunnan province on Wednesday morning, heading for Hanoi, the capital of Vietnam.

Southeast Asia - Thu, May 15, 2025 | 10:34 pm GMT+7

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserves are on track to surpass 4 million tons, setting an all-time high after reaching a new record of 3.7 million tons in mid-May.

Southeast Asia - Thu, May 15, 2025 | 10:24 pm GMT+7

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

Huadian Group, a wholly state-owned company of China, is keen to further invest in Vietnam’s renewable energy sector.

Energy - Thu, May 15, 2025 | 9:40 pm GMT+7

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam's macroeconomic indicators remained broadly positive, with both trade and FDI attraction performing well in the first four months of the year, write Dragon Capital analysts.

Economy - Thu, May 15, 2025 | 5:47 pm GMT+7

'How many new jobs created’ should be new KPI for local governments: VCCI leader

'How many new jobs created’ should be new KPI for local governments: VCCI leader

With a shift in thinking about the role of the private sector, local governments may soon prioritize creation of new jobs and businesses over traditional growth metrics, according to Dau Anh Tuan, deputy secretary-general of the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Thu, May 15, 2025 | 5:23 pm GMT+7

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife, a global multi-level marketing corporation selling dietary supplements, recorded $75.4 million in net sales in Vietnam in the first quarter of 2025, according to the firm’s report.

Companies - Thu, May 15, 2025 | 5:01 pm GMT+7

Japan’s Nitto Denko to quadruple northern Vietnam plant's production capacity

Japan’s Nitto Denko to quadruple northern Vietnam plant's production capacity

Nitto Vietnam, a subsidiary of Japan’s multi-sector corporation Nitto Denko, has decided to raise the investment in its Hung Yen province-based plant by $28 million to $160 million.

Investing - Thu, May 15, 2025 | 3:58 pm GMT+7

UAE Embassy, VAFIE to jointly strengthen Vietnam-UAE business connections

UAE Embassy, VAFIE to jointly strengthen Vietnam-UAE business connections

The Embassy of the United Arab Emirates (UAE) in Hanoi and the Vietnam's Association of Foreign Invested Enterprises (VAFIE) on Wednesday agreed to jointly deploy specific measures to lift trade and investment ties between the two countries.

Companies - Thu, May 15, 2025 | 2:37 pm GMT+7

Turbulent times of Vietnam's food giant Kido

Turbulent times of Vietnam's food giant Kido

Profits of Kido Group, a leading food company in Vietnam, have been lower than its leaders' expectations in the past few years, with its real estate investment and divestment from Kido Foods not being smooth sailing.

Companies - Thu, May 15, 2025 | 2:27 pm GMT+7

Impact of US tariffs on Vietnam’s textile, clothing and footwear sector

Impact of US tariffs on Vietnam’s textile, clothing and footwear sector

The adjustments in the U.S. tariffs are poised to reshape Vietnam’s textile, clothing and footwear industry, prompting businesses to reassess their strategies and operations, write Assoc. Prof. Rajkishore Nayak and Corinna Joyce from the Fashion Enterprise program at RMIT University Vietnam.

Consulting - Thu, May 15, 2025 | 8:17 am GMT+7

Malaysia-EU FTA expected to promote ASEAN-EU ties

Malaysia-EU FTA expected to promote ASEAN-EU ties

The EU is placing high expectations on the Free Trade Agreement (FTA) with Malaysia as a central pillar in its strategy to strengthen relations with the Association of Southeast Asian Nations (ASEAN) amid escalating global uncertainties.

Southeast Asia - Wed, May 14, 2025 | 10:17 pm GMT+7

Malaysia works hard to expand semiconductor ecosystem

Malaysia works hard to expand semiconductor ecosystem

Malaysia needs to broaden its manufacturing ecosystem beyond assembly lines and semiconductors to fully capitalize on foreign investments, towards becoming a more complete manufacturing hub.

Southeast Asia - Wed, May 14, 2025 | 10:14 pm GMT+7

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Phu Quoc International Airport in the southern province of Kien Giang will be expanded and upgraded to support local economic development, while ensuring transport infrastructure for hosting the 2027 APEC Economic Leaders' Week.

Travel - Wed, May 14, 2025 | 9:57 pm GMT+7

Banks cut staff, transaction branches amid accelerating digital transformation

Banks cut staff, transaction branches amid accelerating digital transformation

A series of banks have announced plans to cut staff and transaction offices, setting off a wave of job losses in the banking industry that has been considered one of the hottest professions in recent years.

Companies - Wed, May 14, 2025 | 9:51 pm GMT+7

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector, particularly seaport transportation, faces mounting pressure from the U.S.’s tariff policy.

Southeast Asia - Wed, May 14, 2025 | 9:40 pm GMT+7

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of private conglomerate Vingroup, on Wednesday announced its registration to invest in Vietnam’s North-South high-speed railway project.

Companies - Wed, May 14, 2025 | 9:24 pm GMT+7