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Vietnam’s H1 export surge masks a looming US tariff shock

Vietnam’s H1 export surge masks a looming US tariff shock



Vietnam’s H1 export surge masks a looming US tariff shock

Since February **, ****, most US imports have faced a temporary ** per cent surcharge under Section *** of the Trade Act of ****, an emergency measure introduced after the US Supreme Court invalidated the administration**;s earlier tariff framework. By law, that surcharge expires on July **, ****. The proposed replacement, published by the US Trade Representative (USTR) on June *, ****, would impose a **.* per cent tariff on Vietnamese goods under Section ***. Unlike Section ***, Section *** has neither a statutory expiry date nor a cap on tariff rates.

Figure *: Vietnam supplied US$**.** billion of apparel to the US in ****.

What the trade data shows

In Q* ****, US apparel imports from Vietnam reached $*.** billion, up *.* per cent from Q* ****; textile imports (yarn, fabric, fibre) jumped **.* per cent to $**.* million. But that masks a front-loading effect. Cao Huu Hieu, chief executive officer, Vinatex said manufacturers “pushed production schedules forward and accelerated shipments” to exploit the low-tariff window effectively pulling future demand into early ****. The lift was real for the group: Nhan Dan and The Investor report Vinatex H* **** consolidated revenue of about VND**.** trillion (~$***.** million), up *.* per cent, with pre-tax profit up **.* per cent to roughly VND***.* billion (~$**.** million).



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