About this Video

• Video Title: Why Trump Slapped High Tariffs On Countries Like Vietnam
• Channel: CNBC
• Speakers: Not specified in the transcript.
• Duration: 00:08:21

Introduction

This CNBC video discusses the impact of President Trump's tariff plan on Vietnam, focusing on the reasons behind the tariffs, their potential effects on Vietnamese producers and US consumers, and the broader context of the "China +1" strategy. The video explores the economic relationship between the US and Vietnam, highlighting the significant trade deficit and the potential for further escalation.

Key Takeaways

• Vietnam's vulnerability to US tariffs: Vietnam's significant export of consumer goods (electronics, apparel) makes it highly vulnerable to US tariff increases.
• The "China +1" strategy: Businesses shifted production from China to countries like Vietnam to mitigate risks associated with over-reliance on China. This contributed to increased US imports from Vietnam.
• Allegations of Chinese foul play: There is evidence suggesting Chinese firms may have rerouted exports through Vietnam to avoid US tariffs.
• Trade deficits and unfair trade practices: The US, under Trump, argued that countries like Vietnam were using unfair trade practices, contributing to a sizable trade deficit. Vietnam is exploring currency revaluation as a possible response.
• Significant economic impact: Increased tariffs could significantly impact the average US household and cause economic hardship in Vietnam, potentially reversing recent economic gains.

The transcript states that Vietnam exports a lot of final assembly of electronics, such as iPhones and Samsung smartphones, and a lot of apparel. It also mentions that Vietnam is the second-largest supplier of clothing and shoes to the U.S. after China and that Nike produces about 50% of its footwear and 28% of its apparel abroad in Vietnam. However, the transcript does not provide specific percentages of US consumption for these goods.