Vietnam: Problems with US meat exports due to high tariffs

Tariff differences affect US competitiveness

US beef exports to Vietnam are subject to most-favored-nation (MFN) tariffs, which are significantly higher than those of countries participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other free trade agreements. For example, frozen pork from the US is subject to a 10% MFN tariff, while CPTPP members such as CANADA and Mexico enjoy zero tariffs.

Similarly, US beef imports may be subject to duties of up to 30%, while Australian and New Zealand beef enters Vietnam duty-free under existing agreements.

Vietnam's MEAT import market is expanding and experiencing significant growth, driven by urbanization, rising incomes, and a growing middle class seeking high-quality and processed meat products. In 2024 , the country imported approximately 876,670 tons of meat and meat products worth US$1.78 billion, an 18.1% increase compared to 2023. India remains the largest supplier, accounting for over 22% of total imports, followed by Brazil and RUSSIA .

US Industrial Efforts and Strategic Positioning

To address these issues, American industry groups like the United States Meat EXPORT Federation (USMEF) are focusing on trade promotion, consumer-focused marketing, and supporting Vietnamese importers through training and incentives. They emphasize the superior quality and safety of American beef, produced according to strict standards and modern inspection systems. The grain-based feed used in American livestock production also produces meat that meets Vietnamese consumers' preferences for tenderness and flavor.

The recent imposition of a 46 percent tariff on Vietnamese products by the United States has created significant tensions in trade relations with the United States, threatening Vietnam's export-driven economy and complicating bilateral relations. Key Vietnamese export sectors, such as electronics, textiles, footwear, and furniture, are particularly vulnerable, as the United States is their primary market, and these products currently face significant price disadvantages.

The tariff is five times higher than Vietnam's average import tax on US goods, highlighting the imbalance and heightening tensions. President Trump previously announced a temporary 90-day suspension of the tariff, reducing it from 46% to 10%, while both sides seek a longer-term agreement. Vietnam has also proposed lowering duties on US imports and promised to address concerns about the transit of Chinese goods through its territory. Despite these efforts, the uncertainty has already disrupted supply chains, jeopardized jobs, and raised concerns about global economic stability.

A look into the future

As Vietnam continues to negotiate and implement trade agreements, the US meat industry is pushing for tariff reductions and more favorable trade terms to remain competitive and meet growing demand in this dynamic market. Participating in future trade negotiations and exploring potential free trade agreements could be crucial for US exporters seeking to strengthen their presence in Vietnam's growing meat market.