Trump hits Vietnam with 46% tariffs using emergency powers

On Apr. 2, 2025, Trump imposed a 46% reciprocal tariff on Vietnamese imports using the International Emergency Economic Powers Act, the first time IEEPA was used for tariffs since Congress passed the law in 1977.

Vietnam's exports to the United States totaled $142.4 billion and account for 30% of Vietnam's GDP, making it more dependent on U.S. trade than any other major American trading partner.

Vietnam produces 50% of all Nike brand footwear. Apple suppliers started test production of Apple Watches in northern Vietnam as companies diversify from China.

After Vietnam's Communist Party leader To Lam called Trump on Apr. 4, 2025, they negotiated a 90-day pause dropping the rate to 10% while talks proceeded.

On July 2, 2025, Trump announced the final deal: 20% tariff on normal imports and 40% on goods suspected of being Chinese products transshipped through Vietnam.

The Court of International Trade ruled on May 28, 2025, that Trump exceeded his IEEPA authority because trade deficits aren't genuine emergencies. The ruling was stayed pending Supreme Court review.

The Supreme Court heard oral arguments on Nov. 5, 2025, on whether IEEPA authorizes the president to impose tariffs, a power the Constitution explicitly grants to Congress. Over 700 businesses filed refund claims.

The Tax Foundation estimated Trump's tariffs add $1,000 to annual household costs in 2025 and $1,300 in 2026.