Vietnam Benefits from Trump’s Tariff War... Now Top U.S. Trade Surplus Partner

USD 114 Billion Trade Surplus in First Half of the Year
U.S. Imports from Vietnam Soar by 40%
Some Raise Suspicions of Illegal Transshipment

Vietnam has risen to become the country earning the most money from selling goods to the United States. This is due to the fact that production bases for companies such as Samsung Electronics, Intel, and Foxconn are located in Vietnam, and the country has also benefited from the U.S. trade restrictions on China imposed by the Trump administration. As a result, Vietnam has overtaken China and Mexico to claim the top spot.

Vietnamese soccer fans are cheering during the match between Vietnam and Cambodia in the '2026 ASEAN Championship Group Stage' held on the 7th (local time) at the My Dinh National Stadium in Hanoi, Vietnam. Photo by AFP Yonhap News

On the 26th (local time), The Wall Street Journal (WSJ), citing U.S. federal government data, reported that Vietnam’s trade surplus with the United States in the first half of this year reached USD 114 billion (approximately KRW 158 trillion). This figure surpasses that of Taiwan, Mexico, and China.

Imports of Vietnamese goods into the United States have surged dramatically since the start of the year. In the first half of this year, the import value reached USD 123 billion, up 40% from the previous year. In just six months, U.S. imports from Vietnam exceeded the total 2023 figure of USD 114 billion. In contrast, during the same period, imports from China fell from USD 168 billion to USD 129 billion.

This increase in U.S. imports of Vietnamese goods is analyzed as a result of President Trump’s tariff policies on Chinese products. According to the Penn Wharton Budget Model, as of June, the effective tariff rate on Chinese goods in the United States was 23.2%, more than three times the global average of 7%. In contrast, the tariff rate for Vietnamese goods was just 6.5%. President Trump stated that tariffs were intended to reduce the influx of Chinese products into the U.S. and revive American manufacturing. However, according to the WSJ, contrary to his goal, the outcome has only been the relocation of production bases from China to Vietnam.

Companies such as Apple, Nike, and Lululemon have relocated their production bases to Vietnam over the past decade, followed by small and medium-sized businesses. U.S. furniture company TOV Furniture sourced 60% of its products from China in 2024, but Vietnam's share has now increased to 60%, while China’s has dropped to 25%. Founder Bruce Krinsky said, "The shift in production was entirely due to tariffs."

Some have raised suspicions that Chinese goods are being rerouted through Vietnam for indirect export. Peter Navarro, former trade advisor at the White House, has criticized Chinese companies for bypassing export restrictions by shipping goods through third countries. For example, almost-finished clothing might be sent to another country to undergo only the final steps before being exported to the U.S.

On the other hand, Vietnam’s industrial sector admits the possibility of illegal transshipment but argues that the main driver behind the surge in U.S. exports has been the electronics and machinery sectors. About 60% of Vietnam’s exports to the U.S. consist of machinery, electronics, and electrical appliances, with most products coming from companies such as Samsung Electronics, Intel, and Foxconn, which have manufacturing bases in Vietnam. Marc Gillin, Chairman of the American Chamber of Commerce in Vietnam, stated, "Looking at the tremendous surge in electronics products, it is clear where they are coming from," adding, "This is not the same kind of issue as simply relabeling clothes imported from China."

This content was produced with the assistance of AI translation services.