The retail industry is breathing a sigh of relief as the proposed tariff rate on Vietnamese imports has been reduced from 46% to 20%. This development comes after President Donald Trump announced a tentative trade deal with Vietnam, which would impose a 20% duty on Vietnamese imports. While some executives believe this new rate is still bad for business and could have a chilling effect on consumer spending, others see it as a manageable solution.
According to the American Apparel & Footwear Association, Vietnam has become an essential part of the footwear supply chain, with a projected increase in market share to become the largest supplier of shoes to the U.S. by 2025. The reduced tariff rate is seen as a positive sign that similar frameworks could be announced for other Asian countries facing reciprocal tariffs like Malaysia, Cambodia, and Bangladesh.
The impact of the 20% tariff on consumer spending is still unclear, but many companies are planning to raise prices to offset the cost increase. For example, at a 10% levy, the cost of a $95 pair of men’s shoes could rise by $7.42 to $102.42. With a 20% duty in place, the cost increase would be even larger.
Some executives worry that any tariff hike of this magnitude will be bad for businesses and consumers. Paul Cosaro, CEO of Picnic Time, stated that higher prices will lead to less money being spent on consumer goods like picnic baskets and coolers.
X22 Report
@X22Report
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Jul 2 Vietnam is opening its market to the United States for the first time in history.
They will pay 20% to sell their products here.
They will pay 40% on transshipping.
Kelly D
@KellDA
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Jul 2 Vietnam will continue to get most of their merchandise from China. They aren’t stupid and they sure the fuck aren’t going to buy our SUVs when their yearly income is $8,125 US dollars. The end.
ProudCanRobz
@RMapleCan
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Jul 2 so…. in other words, the Vietnamese consumers will be able to buy US products at no extra costs, but whatever Americans import from Vietnam will now cost 20%-40% more. Tell me again, who is this deal better for?
thank you for your attention to this matter.
Nikkei Asia
@NikkeiAsia
·
Jul 3 US-Vietnam deal: Vietnam wary of Trump’s 40% tariff on transshipping
“[G]iven the country’s deep integration into global manufacturing chains, it’s unrealistic to expect ‘Made in Vietnam’ goods to contain no foreign input,” an expert told Nikkei Asia.
https://s.nikkei.com/3I9j3qs
Johnny FD
@JohnnyFDK
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Jul 3 TLDR; Americans now need to pay a 20%-40% import tax anytime you buy that was made in Vietnam.
But now you can sell things to a country where people earn an average of $325 a month.
You’re welcome! – Trump
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