HAWA Representative: It is possible that wood products have not been subject to Trump’s reciprocal tariffs

US President Donald Trump has just announced a 46% reciprocal tax on goods from Vietnam, raising concerns for export industries, including wood and wood products. However, according to a representative of the Handicraft and Wood Processing Association of Ho Chi Minh City (HAWA), there is still no detailed information on each item and it is possible that wood products have not been taxed.

Speaking with the writer, Mr. Huynh Le Dai Thang – Member of the Executive Committee of HAWA, said that the 46% tax rate is a general ceiling, not specifically determined for each type of product.

“Currently, we still do not know exactly how much tax wood products will be subject to, and it is even possible that wood products have not been taxed. Therefore, we need to wait for more official information from the US before being able to make a specific assessment,” Mr. Thang said.

The US is an important export market for the Vietnamese wood industry. In 2024, the export turnover of wood and wood products to the US will reach more than 9 billion USD, an increase of 24% compared to the previous year, accounting for more than 50% of the total furniture export volume. In the context of the US imposing reciprocal tariffs, many businesses in the industry are worried about facing difficulties, but HAWA said they have prepared in advance.

Vietnam’s main export items to the US in 2024
Unit: Billion USD

Source: Customs Department, Vietstock synthesis

“The HAWA Executive Board sent a petition to the Government more than a month ago. Just 3 days ago, the Government issued a Decree to reduce import tax on raw wood and finished wood products imported from the US to 0%,” Mr. Thang shared and assessed that this is a positive move, giving Vietnam an advantage in the negotiation process.

Although the US has announced the new tax rate, there is still about a week for the countries involved to negotiate with the US Department of Commerce. According to the HAWA representative, the Vietnamese Government has sent a high-level delegation to the US for negotiations. He hopes that with the tax exemption policy for wood imports from the US, Vietnam will have more advantages in the upcoming negotiations.

On the morning of April 3, Prime Minister Pham Minh Chinh chaired a meeting with ministries and branches to assess the situation and discuss solutions. The Prime Minister emphasized that trade competition is becoming increasingly complicated and unpredictable. He affirmed that Vietnam has made efforts to implement many solutions to respond and that the US’s imposition of tax is not suitable for the relationship between the two countries.

The Prime Minister asked ministries and branches to maintain their composure and have flexible and effective policies. At the same time, the Government will establish a rapid response team headed by Deputy Prime Minister Bui Thanh Son to closely monitor the situation. Deputy Prime Minister Ho Duc Phoc was also assigned to listen to opinions from businesses, including large export enterprises, to find suitable solutions.