The tariffs will hack at the root of Vietnam’s export-oriented economic model. In recent years its economy has benefited from manufacturers diversifying away from China, growing by an average of 7% a year over the past decade (excluding the pandemic).

The April 3 announcement that the Trump administration will impose 46 per cent “reciprocal tariffs” on Vietnam from April 9 was completely unexpected.

Tariff deals may be difficult to come by. Vietnam’s offer of 0% tariffs on U.S. goods won’t be enough to strike a deal to lower the levies announced last week, according to President Donald Trump’s trade adviser Peter Navarro.