President Donald Trump’s tariff plan has resulted in nearly 70 countries in talks with the U.S. to avert tariffs, including Vietnam, which was one of the first to reach out to negotiate.
In 2024, Vietnam ran a trade surplus of $124 billion to the U.S., which is why the country is being targeted for tariffs. President Trump’s proposed 46% reciprocal tariffs on Vietnam have been delayed and the country is negotiating in hopes of getting duties down to 22% to 28%.
On a trade mission to Vietnam, South Dakota soybean farmers and trade officials learned more about the trade imbalance.
“Vietnam is the third largest trade deficit for exporting countries, so it’s an issue,” says Rachael Weiland, director of business engagement, South Dakota Trade.
Tariffs are a huge concern for exporters in Vietnam who want to avoid U.S. reciprocal tariffs. Hemant Bansal, general director, Sethia Hemraj, a soy processing company in Vietnam, says they need certainty.
“It’s not only about tariffs — it’s more about the uncertain environment, and in that kind of environment our crushers and our traders try to keep away from the market until things settle down,” Hemraj says.
This price volatility also makes it difficult for businesses to plan.
“When there is uncertainty, some days the price increases 4%, some days it drops 5%, that kind of environment is not good for trade,” he says.
As South Dakota farmers such as Tanner Hento found out, the uncertainty of tariffs has already caused some Vietnam businesses to switch the origin of their purchases.
“People are happy to have U.S. soy, they’re impressed with the quality, but at the end of the day, economics do kick in and we’re hearing a lot about how the tariffs are negating our ability to have free trade,” Hento says.
Hento, who serves on the South Dakota Soybean Association, says tariffs and trade issues make the U.S. an unreliable supplier, potentially losing more global market share.
“I think South America looks at this like they’re increasing their trade without having to do anything,” he adds.
One of hardest hit sectors could be seafood exporters as the U.S. accounts for 20% of their business. However, Vietnam ag businesses hope the two countries can strike a deal.
“We want to find out the way to use more of the U.S. soybean meal,” says Ha Tran Ngoc, sourcing manager for BioMar Viet Uc, which manufactures livestock and aquaculture feed. “Yes, we want to export the seafood, shrimp and more fish to the U.S., and we want to use U.S. soybean meal for aqua feed.”
With a medium income of only $4,500 in Vietnam, trade officials on the trip say reciprocal tariffs and trade might be hard to achieve.
“I think the difference is that Vietnam is not apples to apples with some of the other countries we’re dealing with. This is a poorer country,” Weiland explains. “The amount of products we’re able to bring in differs, so it’s going to be harder to close that gap.”
Still, she says the hope is tariffs are a short-term pain for long-term gain.
"[President Trump’s tariffs are] a tactic to negotiate better trade deals, and we hope it’s something that will come to fruition. It just depends on what each country is going to bring to the table,” Weiland adds.
