Despite Vietnam’s strategic importance and early concessions, it has become the most vulnerable target of the Trump administration’s tariffs—and now faces an uphill battle to protect its economy and

The tariffs will hack at the root of Vietnam’s export-oriented economic model. In recent years its economy has benefited from manufacturers diversifying away from China, growing by an average of 7% a year over the past decade (excluding the pandemic).

Tariff deals may be difficult to come by. Vietnam’s offer of 0% tariffs on U.S. goods won’t be enough to strike a deal to lower the levies announced last week, according to President Donald Trump’s trade adviser Peter Navarro.