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flag U.S. 20% tariffs could cost Vietnam $25 billion in exports, slashing its GDP by 5%.

flag New U.S. tariffs imposed in August could cost Vietnam up to $25 billion in exports, making it the hardest-hit Southeast Asian nation, according to a UNDP estimate. flag The 20% duties may reduce Vietnam’s U.S. exports by nearly 20%, with a projected 19.2% decline—nearly double the regional average—due to heavy reliance on U.S. demand for goods like footwear and apparel. flag Early data shows a 2% drop in exports from July, with footwear falling 5.5%. flag The tariffs could reduce Vietnam’s GDP by about 5%, though impacts may unfold over years, partially offset by cost absorption, market diversification, and stronger domestic spending. flag The estimate assumes all tariffs are passed to U.S. consumers, which has not yet occurred, keeping inflation effects limited. flag It excludes potential 40% tariffs on transshipped goods and exemptions for consumer electronics, which make up 28% of exports—yet even with those, losses could reach $18 billion. flag Vietnam’s finance and industry ministries have not commented.

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