By interlink | 01/08/2025
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The US Issues New Executive Order on Tariffs: What Should Exporting Businesses Be Aware Of?
On July 31, 2025, the U.S. government officially issued an Executive Order adjusting tariffs on reciprocity, directly affecting imported goods from over 80 countries, including Vietnam. This is a strong move to address the long-standing trade deficit and reaffirm the U.S. stance on protecting its supply chains and economic and security interests.
So what’s special about this new order? What do Vietnamese businesses exporting to the U.S. need to prepare? Let’s analyze it in detail in the article below.
Main Contents of the Executive Order of July 31, 2025
According to the new Executive Order signed by President Donald J. Trump, notable changes include:
1. Additional tariffs based on the principle of “reciprocity”
The United States will apply additional ad valorem (a percentage of the value of goods) tariffs to goods from countries with tariffs, technical barriers, or trade policies that are disproportionate to those of the United States.
Example:
- Goods from Vietnam will be subject to an additional 20% tax.
- India: 25%
- Thailand: 19%
- EU: Additional tax is adjusted flexibly depending on the type of goods (minimum 15%)
2. Measures to combat tax evasion through transshipment
Any transshipment aimed at tax evasion will be heavily penalized:
- A 40% additional tax will be applied.
- Other additional penalties and recovery charges as per federal law.
- No mitigation or exemption will be considered.
3. Changes to the HTSUS tariff schedule
The United States Classification System (HTSUS) will be revised to clearly reflect the tax rates by country and product group. These revisions will take effect 7 days after the date of signing.
What should Vietnamese businesses exporting to the US be aware of?
1. Increased Costs
With an additional 20% tariff, the total cost of exporting goods to the US will increase significantly, especially for sectors such as:
- Textiles
- Wood and wood products
- Consumer electronics
- Processed foods
2. Tighter Customs Inspections and Procedures
Goods from Vietnam will be subject to stricter inspections regarding origin and the possibility of transit through a third country to evade taxes.
3. Risk of Supply Chain Disruptions
With stricter regulations, if businesses are not well-prepared in terms of paperwork, declarations, and shipping procedures, the risk of delayed customs clearance or return of goods is entirely possible.
Interlink – Safe and Optimal Logistics Solutions in the Context of Changing Policies
At Interlink, we understand the complexity and risks in export operations in the post-pandemic era and geopolitical instability. Therefore, we are committed to supporting businesses in:
Advising on and updating the latest tax policies:
We closely monitor executive orders, HTSUS tariff schedules, and changes related to import and export.
Optimizing shipping routes:
Advising on routes to avoid risky transshipment, ensuring correct country of origin, and optimizing transportation costs.
Supporting the preparation of complete and valid customs documents:
Helping businesses ensure transparency and compliance with the law when exporting to the United States.
Conclusion
The new US Executive Order serves as a strong warning to countries with unbalanced trade relations. In this context, Vietnamese businesses need to proactively grasp information, review export processes, and work closely with reputable logistics providers like Interlink to minimize risks and maintain a stable flow of goods to the US market.
NEWS & BLOG
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