🧐 Explanation of the significance of the numbers 90% and 46% on Trump's tariff table with Vietnam

This morning, Donald Trump announced the retaliatory tariffs, with Vietnam facing tariffs of up to 46%, nearly the highest on the list. Many people mistakenly think that the 90% is due to Vietnam taxing the U.S., so the 46% response from the U.S. is reasonable.

The 90% figure is not actually due to Vietnam taxing American goods, but rather because Vietnam has a large trade surplus, mainly exporting goods to the U.S. without importing much from the U.S. to Vietnam.

For example:

- Vietnam's exports to the U.S.: 136.6 billion USD

- Imports from the U.S.: 13.1 billion USD

- Trade deficit: 123.5 billion USD

- Calculation: 123.5 / 136.6 = ~90%

- U.S. tariffs ~1/2 of 90% = 46%

This 46% rate is very burdensome, as the U.S. is Vietnam's largest export market, especially for items like textiles, electronics, footwear, and agricultural products.

I hope this 46% figure is intended to create an anchoring effect for negotiations to request Vietnam to import more goods from the U.S. If the 46% is maintained like this, FDI might completely withdraw from Vietnam 🥲.