The U.S.-Vietnam trade relationship just hit a serious speed bump, and it’s making waves across global supply chains. On April 2, 2025, President Trump announced sweeping tariffs on all Vietnamese imports to the U.S., shaking up a trade partnership worth over $130 billion a year. But just as quickly as the news broke, it shifted: Trump paused tariffs on Vietnam for 90 days, putting the brakes on what could’ve been a massive disruption.
So, what now?
In this article, we’ll break down what this pause means for buyers, suppliers, and the entire Vietnam sourcing landscape. Whether you’re managing production in Vietnam or importing goods to the U.S., here’s what you need to know and how to prepare for what comes next.
What Happened: A Quick Recap of Trump’s Tariff Decision
In one of the boldest moves of his second term, President Trump announced a 46% tariff on all imports from Vietnam as part of his “Reciprocal Tariff Program.” The Trump tariffs on Vietnam sent shockwaves through global supply chains when they were suddenly revealed on April 2, with implementation originally set for April 9, just a seven-day window that left manufacturers and buyers scrambling.
But due to strong diplomatic pressure and industry backlash, Trump paused tariffs on Vietnam for 90 days, giving both countries time to negotiate a potential deal.
What does a 90-day suspension really mean?
It’s not a cancellation, it’s a countdown. In trade terms, this kind of pause is essentially a grace period. With Trump agreeing to pause tariffs, businesses still need to make decisions under the cloud of uncertainty. Contracts, pricing, and shipping plans may need to be adjusted with the assumption that tariffs could snap back into place with very little warning.
The politics behind the tariffs
Trump’s move stems from his ongoing push for what he calls “fair trade.” Vietnam has one of the largest trade surpluses with the U.S., and Trump has accused the country of benefiting unfairly from low tariffs and lenient trade rules. His proposed tariffs are meant to pressure Vietnam into reducing its surplus and buying more American-made goods.
How the Tariff Pause Affects Vietnam Sourcing
Short-Term Uncertainty for U.S. Buyers
Yes, the pause provides temporary relief, but the underlying risk hasn’t gone away.
Buyers who rely on Vietnam sourcing, whether it’s garments, furniture, electronics, or packaging, are now stuck in wait-and-see mode. While some contracts may continue as planned, others are being delayed or renegotiated to account for the possible tariff delay effect.
The biggest immediate shift? Diversification. Companies are starting to revisit supply chains in Thailand, India, and other parts of Southeast Asia, not because they want to leave Vietnam, but because they need backup plans.
Vietnam Suppliers Brace for Possible Disruption
On the flip side, Vietnamese suppliers are now under pressure to reassure their buyers and stabilize production forecasts.
Pricing negotiations are already more complicated. The possibility of a 46% hike looms in the background of every discussion, which can make long-term contracts feel risky. Vietnam manufacturing costs could effectively spike overnight if the tariffs go through, even if labor and raw materials stay the same.
Smaller factories, in particular, are vulnerable. With thinner margins and fewer overseas connections, some may face canceled orders or delayed payments. Meanwhile, larger exporters are proactively exploring domestic markets or regional buyers to soften the blow if U.S. demand weakens.
Medium-Term Scenarios for Global Sourcing
The 90-day pause gives businesses a breather, but it doesn’t eliminate the risk. There are two very different paths this situation could take, and both come with major implications for Vietnam sourcing and the broader supply chain.
If tariffs return after 90 days
If the tariff suspension ends without a deal, and the 46% tariff on Vietnamese imports is reinstated, the ripple effects will be immediate:
- Cost of goods from Vietnam spikes overnight. This will impact pricing for a wide range of products, especially labor-intensive goods like furniture, apparel, and consumer electronics.
- U.S. buyers might shift production elsewhere, not because Vietnam isn’t capable, but because the price gap becomes too wide to justify. Countries like India, Indonesia, and Mexico may see increased interest as sourcing alternatives.
- Vietnam risks losing its competitive edge in certain export categories. If tariffs stick, sectors that depend heavily on the U.S. market may need to scale back or adapt quickly.
While Vietnam remains a top destination for quality manufacturing, sustained high tariffs could force a rethink, especially for companies with thin profit margins.
If Vietnam and the U.S. reach a deal
If negotiations are successful, and the tariffs are dropped permanently, we could see a very different outcome:
- Trade stabilizes, and confidence returns to the U.S.-Vietnam sourcing pipeline.
- Buyers may commit more long-term, knowing that their Vietnam operations are secure and predictable.
- Vietnam could introduce new incentives, like tax breaks or faster permitting, to strengthen ties with American companies and reduce the chance of future trade tension.
In this scenario, Vietnam not only maintains its role in global sourcing but could expand it, especially if the country shows it can handle political pressure and protect its export economy.
What Buyers and Suppliers Should Do Now
Regardless of how this plays out, businesses can’t afford to wait passively. Here’s how buyers and suppliers should respond:
Don’t panic, plan smart
Diversifying your sourcing doesn’t mean abandoning Vietnam. Keep your operations steady, but build backup options in parallel. Think of it as risk insurance rather than a total relocation.
Talk to partners early
Renegotiate terms with your current suppliers now. Discuss lead times, pricing flexibility, and minimum order volumes. Proactive communication can prevent last-minute disruptions.
Factor in logistics delays
If you do explore suppliers outside Vietnam, don’t overlook the impact of longer shipping routes, customs delays, and onboarding time. Transitioning takes planning.
The smartest companies are balancing loyalty to proven Vietnamese partners with the need to stay flexible. It’s not about jumping ship, it’s about having options.
How VALO Vietnam Can Help
At VALO Vietnam, we understand that every sourcing decision right now carries weight. That’s why we offer more than just matchmaking, we offer clarity, stability, and support.
- We connect buyers with vetted suppliers in Vietnam and across Asia, so you’re never short on reliable sourcing options.
- We offer sourcing flexibility, whether you want to stay in Vietnam or explore nearshore and offshore alternatives.
- We help Vietnamese suppliers find new buyers beyond the U.S., in Europe, Asia, and other growing markets, so they can stay resilient, even if American demand shifts.
Trade environments may change, but trusted relationships don’t have to. VALO is here to keep your sourcing plans stable, strategic, and future-ready, no matter what comes next.
Navigating the Tariff Pause with Confidence: Partner with VALO Vietnam
The decision to pause tariffs on Vietnam for 90 days has created a narrow window of opportunity, but also a lot of uncertainty. Whether these tariffs return or get resolved through diplomacy, one thing is clear: smart sourcing decisions now will determine who stays competitive tomorrow.
At VALO Vietnam, we help businesses adapt to shifting trade policies with clarity and speed. Our platform connects you directly with verified Vietnamese suppliers, supports diversification strategies, and opens doors to new markets across Asia and beyond. We don’t take commission, you pay a simple flat membership fee, giving you access to real cost transparency and full control over your sourcing.
Trump paused tariffs on Vietnam, but the global sourcing landscape is still in motion. Now’s the time to strengthen your supplier network, plan for contingencies, and stay ahead of the curve.
Contact VALO Vietnam today to explore secure, scalable sourcing options, and keep your business resilient, no matter what happens next.