Vietnam's views on new U.S. tariffs and their economic impact

On 2 April 2025, President Donald Trump announced new tariffs affecting Southeast Asian countries as follows:

• Vietnam: 46%
• Cambodia: 49%
• Laos: 48%
• Myanmar: 44%
• Thailand: 37%
• Indonesia: 32%
• Brunei: 24%
• Malaysia: 24%
• Philippines: 17%
• Singapore: 10%
• Timor-Leste: 10%

These new tariffs have raised significant concern across the region, and in Vietnam, citizens have shared a range of perspectives on how these tariffs might impact their daily lives, the economy, and consumer behaviour. The following insights are based on a survey conducted by Milieu Insight, which polled 1,009 individuals across Vietnam.

Awareness of the U.S. tariffs

A striking 84% of respondents were aware of the new tariffs imposed by the U.S. on Southeast Asian nations, indicating a high level of awareness in Vietnam about the global trade shifts. This was consistent across age groups, with younger adults (16-24 years old) showing slightly less awareness (82%) compared to older age groups, which ranged from 86% to 87% awareness.

Concerns about daily life

When asked about how concerned they were about the impact of these tariffs on their daily lives, 34% of respondents expressed being "very concerned." Another 44% were "somewhat concerned," which suggests that the majority of Vietnamese people recognise the potential disruptions these tariffs could bring, even if they are not overly alarmed. This sense of unease was particularly noticeable in older age groups, with 43% of individuals aged 45 and above being very concerned, compared to just 23% of those aged 16-24.

Impact on Vietnam's economy

The economic implications of the tariffs were also a point of significant concern. 22% of respondents predicted the tariffs would have a "very negative" effect on the country’s economy, while 63% foresaw a "somewhat negative" impact. This sentiment was shared across most age groups, though the younger demographic (16-24 years old) were somewhat less pessimistic than older groups. For example, 67% of people aged 25-34 and 46% of people aged 55+ believed the tariffs would negatively impact the economy.

Price increases for everyday goods

The likelihood of tariffs leading to higher prices for everyday goods was another topic addressed in the survey. Nearly half of all respondents (44%) believed that prices would increase "significantly," while 47% anticipated a "somewhat" increase in prices. These concerns were most prominent among those aged 35-44, where 51% expected a significant rise in prices. The impact of these price increases was felt more intensely among older respondents (45+), with 43% of them fearing higher prices.

Shifting spending Hhabits

In response to anticipated price hikes, many respondents indicated that they would change their spending habits. The most common adjustment was to switch to local alternatives, with 55% of all respondents stating they would opt for local products instead of imported goods. Younger consumers were more inclined to buy fewer imported goods (31%), while older respondents (55+) were more likely to shift towards local alternatives (59%). This indicates a strong preference for supporting local industries in the face of economic pressure from foreign tariffs.

The products most affected by tariffs

When asked about which products would be most affected by the new tariffs, electronics & gadgets topped the list, with 66% of respondents believing this category would experience the greatest impact. Other significant sectors included food & beverages (43%), clothing & fashion (40%), and household items & appliances (45%). This mirrors global trade concerns, as tariffs often target consumer goods, which are vital to everyday life.

Local vs. imported goods

In light of the tariffs, 44% of respondents said they were "definitely" more likely to purchase locally made products, while another 46% said they would consider doing so "somewhat." This shift reflects a growing trend of consumers seeking to support local businesses and industries, which could help mitigate the adverse effects of the tariffs on the economy.

Business responses to price increases

As prices are expected to rise, respondents were asked how they thought businesses would respond. A majority of 48% believed that businesses would offer more discounts and promotions, while 43% felt that businesses would absorb the costs and maintain stable prices. However, 27% expected businesses to increase prices and pass the cost onto consumers. A smaller portion, 20%, anticipated that product quality might be reduced to maintain prices.

Confidence in government

When it came to the government’s ability to manage the economic impact of these tariffs, the survey found a mixed level of confidence. While 28% of respondents were "very confident" in the government's ability to handle the situation, a larger portion (53%) felt "somewhat confident." This suggests a generally optimistic outlook, though there is some uncertainty, particularly among older respondents. For instance, 22% of those aged 45+ expressed little confidence in the government’s response, compared to just 7% in the younger age group (16-24).

Expected government policy response

Finally, when asked about what policy actions they expected from the government, many respondents believed that measures such as introducing subsidies to support local consumers (33%) and negotiating trade agreements with other countries (39%) would be crucial in mitigating the effects of the tariffs. A significant number also suggested that reducing reliance on U.S. imports by expanding domestic industries (43%) should be a key priority for the government in response to the tariffs.

Conclusion

The survey results paints a picture of a population that is highly aware of the U.S. tariffs and concerned about their economic impact. While there is widespread apprehension about the negative effects on daily life and the economy, Vietnamese consumers appear willing to adjust their spending habits by favouring local products. This shift highlights a growing sense of self-reliance and a desire to support domestic industries in the face of external economic pressures. However, the data also indicates that the Vietnamese public expects proactive measures from the government to help navigate these challenges.

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