On April 2 — christened “Liberation Day” — President Donald Trump declared a national emergency in response to the “large and persistent U.S. trade deficit” and “unfair” economic practices by foreign countries that, according to Trump, hurt the American people by undermining the U.S. industry and employment.

In response, the president announced a minimum 10% tariff on all U.S. imports, plus higher tariffs, ranging from 11% to 50%, on imports from nearly 60 countries. These “reciprocal tariffs,” based on trade deficit calculations, targeted over 180 countries and territories. After a week of turmoil in the stock and bond markets, Trump announced a 90-day pause on reciprocal tariffs over 10 percent for most countries except China.

However, the reality of imposing tariffs and changing global trade dynamics is more complex. For example, Vietnam, like other Southeast Asian countries, has long maintained a non-aligned stance on the global geopolitical front and navigating through the choppy waters of great power competition. Hence, Vietnam's response to Trump’s moves should be seen as a reflection of its foreign policy priorities rooted in its national interests, including economic development, and its commitment to non-alignment.

Vietnam has long been a central figure in the escalation of U.S.-China trade tensions since they began in earnest back in 2018, when President Trump placed 10% tariffs on Chinese imports. In the years since, the U.S. trade deficit with Vietnam has tripled, reaching $123.5 billion in 2024, the last year with complete data. One of the key catalysts for this change is the strategic “decoupling” approach by companies that have relocated production and manufacturing from China to other countries, including Vietnam, in an effort to diversify their supply chains and appease Washington’s concerns about Beijing’s economic ascendancy. With rising geopolitical uncertainties, cheap alternative manufacturing hubs, of which Vietnam has become a prime example, have become attractive substitutes for China.