Tariff Tables Turned – Vietnam’s Fashion Manufacturing Takes the Lead

On April 2, former President Donald Trump announced sweeping global tariffs, marking one of the most dramatic trade policy shifts in recent history—one that impacts nearly every industry worldwide. Among the affected nations, Vietnam stood out for its strong negotiating stance with Trump. However, citing Vietnam’s trade surplus with the U.S. (which had surged by up to 90%), Trump threatened to impose tariffs as high as 46% on Vietnamese goods, effective from April 9.

Other major exporting countries—including Thailand, Cambodia, Bangladesh, and China—also face similar crosshairs. While they’ve remained cautiously subdued so far, many are now preparing measured responses to these U.S. trade policies.

Tensions in the U.S.-China trade war escalated sharply in early April. On April 4, China announced a 34% retaliatory tariff on select U.S. goods, effective April 10, and simultaneously filed a formal complaint against Washington at the WTO. Just hours earlier, Trump had raised tariffs on Chinese imports to a staggering 104%, prompting China to strike back with an 84% tariff on U.S. goods. In a rapid response, Trump declared a further increase to 145%, "effective immediately."

Meanwhile, the European Union condemned the U.S. tariff hikes and pledged to take "appropriate countermeasures," joining the global backlash against America’s aggressive trade stance.

President Trump’s Reciprocal Tariffs Approval on April 2, 2025.

Right now, the new U.S. tariffs are stressing out worldwide exporters, particularly the fashion industry. While designed to stimulate U.S. manufacturing as part of Trump's "America First" trade policy–aiming to bring jobs home and create what he calls fairer trade terms. But they’re messing with way more than just jobs. Asian companies are getting hit hard, global stock markets are tanking. This chaos is just getting started.

On one hand, Trump’s disrupting key export industries across Southeast Asia. On the other, American consumers are feeling the pinch through sharply higher prices on imported goods from tariff-affected nations like Vietnam. With costs rising sharply nationwide, the backlash has grown so severe that protests are erupting nationwide, with many calling for policy changes to ease the financial burden.

The U.S. Protests Insist Against Trump’s Tariffs on April 5.

How Vietnam Reacted Within Hours to the U.S. Tariff Threat

Vietnam racked up an impressive $123 billion trade surplus with the U.S. in 2024, making it one of America's top trading partners. This isn't just about volume - Vietnam has become a crucial supplier across multiple industries like textiles, electronics, footwear, seafood, and furniture, building decades of reliable trade relations with American businesses.

When the U.S. announced new tariffs that could have disrupted this relationship, Vietnam didn't waste time. Former President Trump emphasized Vietnam as a skilled negotiator, Vietnamese leaders moved quickly - picking up the phone directly to discuss postponing the proposed 46% tariff hike. This immediate, high-level response helped calm the waters during a tense trade moment.

"Vietnam is ready to negotiate to bring the import tariff rate to 0% for US goods, increase procurement of US products that are strong and in demand by Vietnam, and at the same time create more favorable conditions for US enterprises to do business and invest in Vietnam," according to the report on the government's official information channel.

After days of global market turmoil, Wall Street stocks jumped as Trump announced a "90-day PAUSE" on the new tariffs, stating on Truth Social that over 75 countries had reached out to negotiate and chose not to retaliate against the U.S.

Furthermore, PM Pham Minh Chinh took the proactive step of banning third-country goods from being repackaged and exported as Vietnamese products - a clear signal that Vietnam values transparent, fair trade with the U.S.

Fashion Companies’ Agile Solutions to Navigate Trade Turbulence

As one of Southeast Asia's leading on-demand manufacturing platforms based in Vietnam, Inflow recognizes the significant challenges posed by recent U.S. tariff policies. Like our U.S partners, including Steve Madden, Reformation and Urban Outfitters were navigating the complex effects of these trade measures, including the rapid depreciation of the VND against the dollar - a development that may ultimately offer cost advantages for U.S. brands sourcing from Vietnam

The current trade environment has created unprecedented supply chain disruptions across the fashion industry. Brands and manufacturers alike are facing severe supply chain volatility, dramatic cost increases (with even basic items like t-shirts seeing significant price hikes) and a growing uncertainty in Asian manufacturing markets. Until things settle down, we're all stuck navigating this mess.

At Inflow, we've developed resilient supply chain solutions designed specifically to help global brands - both American and international - overcome these challenges. Our platform offers:

On-demand production:

By leveraging real-time sales data, we optimize inventory management through a dynamic ordering system. No more massive bulk orders that tie up your cash and leave you stuck with dead stock. Instead, we break it down into smart, weekly shipments that match exactly what's selling right now. This approach minimizes excess inventory, improves cash flow, and ensures you only stock what sells—reducing markdowns and waste.

Fast Turnaround Time:

Working in a digital fashion world, we know that speed is critical in today’s fast-moving market. Our streamlined production process ensures a total lead time of just 30-40 days, allowing you to respond swiftly to waving trends and demand shifts. By reducing delays from sourcing to delivery, you gain agility to adapt to market changes without overcommitting to long-term forecasts.

Global Sourcing, Local Advantage:

Inflow is working with a global production team (spanning China, Vietnam, and India) to identify the most cost-effective manufacturing locations for your orders, ensuring you get the best out of tax benefits. We maximize cost savings by leveraging tariff advantages, such as Vietnam's preferential trade terms for US-bound goods. Our regional specialization ensures the right expertise for each product category, from India's knitwear proficiency to China's technical fabric capabilities. Additionally, we prioritize logistics efficiency by positioning production closer to key markets, reducing transit times while maintaining competitive pricing through comprehensive tax optimization.

Trade-Smart Costing:

While tariffs and raw material costs remain unpredictable, we built flexibility into our pricing model to protect your bottom line. Our team stays ahead of trade policy shifts and constantly adjusts sourcing strategies to keep costs in check. We maintain cost competitiveness by strategically utilizing duty-free manufacturing countries, maybe we negotiate better bulk deals, or find smarter ways to work with fabrics - all while providing complete pricing transparency. And we’ll keep it 100% transparent – no surprises, just fair pricing that works for you, no matter what the market does.

Book a demo with Inflow this week to discover tailored solutions for your unique needs.

Stay tuned – more exclusive supply chain insights are coming next week!

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