President Trump's tarriffs to have little impact on Vietnam's fruit & vegetable sector: association

Vietnam’s fruit and vegetable trade deficit with the U.S. means this sector is likely to be less affected by President Donald Trump's new tariffs, said Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association.

Trump last Wednesday announced 46% tariffs on imports from Vietnam as part of a new wave of global impositions, while it is 34% for China and 20% for the EU. The tariffs for Vietnam will come into force on April 9.

Nguyen told The Investor he believes Vietnam's fruit and vegetable industry would be less affected due to the country's trade deficit with the U.S. regarding these items.

He clarified that the new 46% tariffs from the Trump administration would not apply to all products. Products for which the U.S. has a trade deficit are more likely to face higher taxes.

Regarding fruits and vegetables, in 2024, Vietnam's exports to the U.S. were worth $360 million, which accounted for 5% of Vietnam's total export turnover of these items.

Meanwhile, the Southeast Asian country imported $540 million worth of fruits and vegetables from the U.S., which meant a trade deficit.

As a result, the tariff impact on the Vietnamese fruit and vegetable industry is expected to be minimal, he added.

Nguyen noted that in the worst-case scenario, where the U.S. imposes taxes on Vietnamese fruits and vegetables, businesses would have to adjust to the new conditions.

"Nearly all Vietnamese fruit and vegetable companies do not solely export to the U.S. but diversify their markets. Therefore, if they cannot export to the U.S., they will adapt by selling to other markets.

"Moreover, Vietnamese businesses will focus on processing and recalculating costs to ensure competitive prices in markets that are not subject to U.S. tariffs or that face lower tariffs," he argued.

In 2024, Vietnam’s fruit and vegetable exports reached a record high of more than $7.2 billion, a $1.6 billion increase compared to 2023, according to the Ministry of Agriculture and Environment.

In the first quarter of 2025, fruits and vegetables exported to the U.S. accounted for 9.6% of Vietnam's total exports of these items.

Vietnam's export value of fruits and vegetables in March 2025 was estimated at $450 million, bringing the country's total export value of these items in Q1 to over $1.1 billion, down 11.3% compared to the same period in 2024.