‘Cruel’ Trump tariffs bring Vietnam’s economic dreams crashing down

Facing a 46 per cent tax on export, Hanoi is one of the most striking victims of Trump’s take-no-prisoners trade war

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Vietnamese workers stitch apparel at a garment factory in Ho Chi Minh City on April 3. Photo: AFP

Published: 9:36am, 4 Apr 2025

Hoang Cuong started buying shares five years ago in the hope that he could one day afford to buy a flat in Hanoi.

Fuelled by an economic boom that has transformed Vietnam into one of Southeast Asia’s growth stars, the value of the swimming instructor’s portfolio grew until his dream was within sight.

But on Thursday morning, he woke up to the news that US President Donald Trump had slammed Vietnam with some of the most punitive tariffs in his “Liberation Day” package.

“I am in shock,” said Cuong with deep sighs, speaking from his downtown district workplace. With returns on his investments all but wiped out, the 36-year-old is planning to cash out whatever little he can get. “I am not sure what will be next, whether the situation will get worse – the market might drop even more.”

The Communist country of 101 million people has thrived in the 40 years since the Doi Moi reforms, as it turned itself into a maker of everything from Gap clothes to Samsung smartphones. Now it is facing a 46 per cent tax on exports and is one of the most striking victims of Trump’s second take-no-prisoners trade war.

“In Vietnamese we call it a ‘cutthroat rate’ which will basically destroy our businesses,” said Le Dang Doanh, an economist and former government adviser in Hanoi. “We can’t rely on the US market any more,” Doanh added.