Shi Xinchuan, the owner of a hardware store in northern Vietnam, spends a lot of time these days sitting alone in his empty shop, while his mind fills with anxious theories about who will get hurt – and how badly – by US tariffs.
Advertisement
Since he moved from his native China, the 24-year-old has made a living by supplying companies in the city of Bac Ninh with adhesives, electronic components and other goods.
But many of his localised Chinese clients are now facing a crisis as US President Donald Trump’s aggressive trade policies threaten to upend Vietnam’s vast export sector.
“Chinese companies here are waiting, observing for the next two months,” Shi said as he made a pot of tea. “They’re afraid, yes they’re afraid.”
These are tense, uncertain times for businesses in Bac Ninh. The city of nearly 250,000 people has emerged as a thriving factory hub over the past few years, as Chinese manufacturers moved into the area in search of a tariff-free route to the US market.
Advertisement
Now, that path risks being closed off. In early April, Trump announced plans to slap a 46 per cent levy on imports from Vietnam – one of the highest rates imposed in his so-called “reciprocal” tariff plan.
Though Washington has since paused the reciprocal duties for 90 days, they have not been cancelled and continue to hang over the heads of exporters in Vietnam. Unless Hanoi can strike a deal with Washington, the tariffs will come into force in July.