The second round of Vietnam-US trade negotiations, held from May 19–22 in Washington D.C., has shown encouraging progress. Both nations reached common ground on multiple issues and outlined key areas for future consensus. However, unresolved matters remain, and further discussions are needed. These talks take place amid growing concerns over the US tariff policy impact, particularly as the 90-day suspension on reciprocal tariffs Vietnam nears its end. This is a topic of great concern for Vietnam handicraft exports.
Vietnamese exporters now face the possibility of a 46% tariff reimposed by the United States – posing serious threats to trade, investment inflows, and market stability.
US Congress Debates Vietnam’s Trade Practices
The topic of Vietnam has stirred fierce controversy in the US Congress. Senator John Kennedy (R-Louisiana) openly challenged Commerce Secretary Howard Lutnick over whether the US would reciprocate if Vietnam removed all tariffs. Lutnick dismissed the idea as “nonsensical.”
Kennedy emphasized that reciprocal tariffs are a foundational principle of fair trade. However, he accused the Commerce Department of lacking real intent to negotiate. Lutnick also raised concerns that Vietnam imports raw materials from China and re-exports to the US – fueling accusations of trade circumvention.
These debates highlight differing views: some argue Vietnamese goods offer American consumers cost savings and should be welcomed; others view the trade imbalance as unfair and potentially harmful to US domestic industries.
The dispute, which went viral on social media and gained tens of millions of views, has intensified pressure on both governments as they continue the Vietnam-US trade negotiations.
📌 For insights on navigating international trade risks, explore this USTR briefing on US tariff policy.
What Should Vietnamese Businesses Do Before Tariff Suspension Ends?
With the suspension on reciprocal tariffs Vietnam set to expire on July 9, Vietnamese companies must act fast to mitigate risks. Economist Dr. Pham The Anh urges firms to boost local sourcing and ensure transparent product origin. Higher localization not only strengthens Vietnam’s stance in negotiations but also helps avoid punitive tariffs.
Avoiding “false origin” practices – such as relabeling Chinese goods as Vietnamese – is critical. The US is particularly sensitive to such actions, as highlighted in Congressional hearings.
Pham Hong Hai, CEO of OCB Bank, recommends businesses prepare for financial volatility. Strategic planning and diversification, both in sourcing and export destinations, are essential to reduce exposure to US tariff policy impact.
The Vietnamese government should also support domestic industry by encouraging high-impact public investment and offering tax incentives based on localization rates. This would enhance supply chain strength and export resilience.
Vietnam-US trade negotiations and Vietnam Handicraft Exports: A Sector at Risk and Opportunity
Among the sectors impacted by the current tariff landscape is Vietnam handicraft exports. These products—made from local materials like bamboo, rattan, and seagrass—generally have high local content, which gives them an advantage in terms of origin verification.
However, stricter customs inspections and potential tariff hikes mean that even traditional industries must adapt. Businesses in this sector should invest in design, manufacturing, and packaging within Vietnam to increase product value and defend their market position.
By aligning with shifts in the Vietnam-US trade negotiations, the handicraft sector can turn challenges into export growth opportunities—especially if it stays proactive and transparent.
Looking Ahead: Collaborate with Confidence
In this shifting trade landscape, Vietnamese exporters must be agile, transparent, and well-prepared. For handicraft businesses, this is not only a challenge but also a valuable opportunity to assert product origin, increase localization, and stand out through authenticity and sustainability.
At Viettimecraft, we’re committed to navigating these changes alongside our global partners. Whether you’re a wholesaler, distributor, or brand seeking high-quality, ethically sourced handmade products, we’re ready to support your business with flexible sourcing, customization, and full compliance with international trade requirements.
👉 Let’s connect — explore partnership opportunities, request samples, or speak directly with our export consultants today.