Trump’s Tariffs Create Fear and Uncertainty at Vietnam’s Factories

For the Vietnam Factory Workers Legion, the mathematics of making a living were complicated enough before President Trump announced a huge tariff about the goods they do.

Nguyen Thi Tuyet Hanh worked two factory jobs, six days a week, for almost a year after her husband lost her job in 2023. He had no other option to help four children and keep them at school.

“It was brutal,” said Mrs. Hanh, 40. Her husband is working full again in a factory, but Mr. Trump’s plan to put a 46 percent tariff of Vietnam’s imports hangs on her family, which lives in a row of concrete tents on the outskirts or the city of Ho Chi Minh.

“My family lived that difficult moment: I do not want to live it again,” said Mrs. Hanh, who wins $ 577 for months as a line manager that supervises 138 workers making Nike shoes, the French company of Salomon sporting articles and other global brands.

Fear is reverberant on your factory floor, I live with the buzzing of sewing machines sewing the fabric for shoes that are sent to the United States. Mr. Trump stopped the Vietnam tariff, and similar levies in Dozen from other countries, for 90 days. But it hardly matters here. The destabilizing perspective that tariffs will be restored is already eliminating the economic growth of Vietnam, which depends on doing things for US consumers.

Textile factories and Vietnam clothing have thin gains margins, an average or 5 percent, executives said. And while some of them have increased production to make orders before the deadline of rates in July, others have begun to reduce jobs or have frozen hiring, since American retailers have begun to orders for channels.

No country has grown more as a manufacturing economy in the last 15 years than Vietnam. But at that time, it has also become increasingly dependent on the demand of the United States, which contributed to more than a quarter of its economy last year.

“Everyone living in great uncertainty now,” said Tran Nhu Tung, president of Thanh Cong, a manufacturer of Vietnamese garments with factories and a mill in five locations. Its 6,000 workers make clothes for Eddie Bauer, New Balance, Adidas and others.

Mr. Tung’s customers in the United States have begun to ask Thanh Cong to reduce their prices. “This is a great pressure for the company because the profit margin is very low,” he said.

Shortly after the rates were announced, the Man Management Team of the Cong began to discuss other regions where it could sell is merchandise, such as the Middle East and Europe. The company is also talking to its US clients to ensure that you can pay new import taxes.

“I don’t want to say goodbye to people,” Tung said. “We try everything to keep our people here.”

Thanh Cong has Goths requests from some of its American retail customers to increase production, and the company is trying to accommodate. Tung is optimistic that his government can reach an agreement with the Trump administration. Whatever the two countries are accommodated, it will be important for the future of their business.

Hours after Trump announced reciprocal tariffs in almost 60 countries, the main leader of Vietnam, Lam, called and offered to reduce tariffs to US imports to zero, urging the United States to follow. He then sent a letter to Mr. Trump, requesting a meeting in person with the president in Washington at the end of May to “reach a joint agreement.”

Tung, who is also the vice president of the textile and the appearance of Vietnam, said that the rupture point for most factories would be a final rate that was more than 20 percent.

Vietnam garments are currently taxed by almost 28 percent. This includes a new 10 percent rate that the Trump administration places throughout the country 2, in addition to an existing rate or approximately 18 percent in all Vietnamese garments. A final rate of 20 percent or more, would the profits of the factories and their customers deeply eat?

“In this scenario, the factory has to reduce its single margin, and then the large buyers of the United States would have to reduce their margins and consumers will have to pay more for their garments,” he said.

While things look bad for Vietnam, there is some hope that he does better than his neighbor to the north, China, which has greatly affected US tariffs. China’s loss could win. But a failure in the substantial reduction of the 46 percent figure would be a moment of accounts for thousands of Vietnamese companies that make things be sent to the United States.

For Mian Apparel, it is uncertainty that is more worrying. Its seven factories and two laundries, mainly in northern Vietnam, employ 12,000 workers who make swimsuits, jeans and jackets for brands such as Costco, JC Penney, Carter’s, Target, GAP and Walmart.

“Uncertainty is not good for business,” said Vu Manh Hung, deputy director of Operations or Mian Apparel. Customers are pressing it to deliver products faster. The factories are assuming more workers and finding other ways to produce more before the 90 -day pause ends in the rates.

Tran Quang, an executive of a sailing and home fragrance company, said he had not had to fire workers in the three factories of his company.

But he is anxious because the next ones are normally the high season for his company, which he requested not to be named. This is when their factories are filling orders for the Christmas season. Instead of hiring more workers as usual, at this time, Quang remains tight.

About 90 percent of their company’s customers are in the United States. During week after the rates were announced, Hed did not hear anything from them. It was disconcerting because orders are generally coming weekly. In recent days, some clients have begun to cancel orders, while others expect new ones.

Some experts have said that if the United States and Vietnam cannot reach an agreement, the Trump administration could extend the pause in tariffs.

For factories and their workers, this would be as bad as a high rate.

“If there is uncertainty, the client can redirect his supply chain,” said Quang. “Why should I expect another 90 days? What happens if the result is bad?”