150 days of U.S. tariffs: [2] Flexibility in negotiation, sharing the burden

The United States’ 10% tariff policy over a 150-day period is creating a short buffer for Vietnamese exporters. At the same time, mounting pressures from conflict in the Middle East are driving up logistics costs, fueling volatility in input prices, and heightening risks related to rules of origin and competitive pressures, particularly in food processing, agriculture, and wood products.

Flexible negotiation, shared costs

A survey by the Small and Medium Enterprise Legal Support Center under the Ho Chi Minh City Business Association (HUBA) shows that most firms are clearly feeling a dual squeeze from tariff policy and geopolitical volatility.

Nguyen Duc Nghia, Deputy Director of the center, noted that as of February 24, 2026, the U.S. 10% tariff has been in effect for about one month. This leaves businesses with roughly four months to make the most of the transition period, expanding markets while strengthening resilience for what comes next.

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150 days of U.S. tariffs: [1] Opportunity and challenges for local businesses

In an increasingly level global marketplace, the race for new orders is no longer limited to Viet Nam and the United States; it now includes direct competition from China, Cambodia, Thailand, and other Southeast Asian countries. Even so, Nghia said Vietnamese firms retain advantages thanks to government support policies and improved adaptability.

In agriculture, the direct impact of U.S. tariffs remains less severe than in sectors such as textiles or footwear. Most fresh and processed agricultural exports continue to perform strongly. However, agricultural businesses are not immune to cost pressures, as fertilizer, transportation, and packaging, closely tied to energy prices, have risen sharply, with some items increasing by as much as 30%.

“One clear shift is that businesses are no longer willing to sign large, long-term contracts as before. In an uncertain global environment, most are breaking orders into smaller batches and adopting short-term plans to reduce risk,” Nghia said.

In the wood sector, Do Thi Tuyet Trinh, CEO and founder of VNP-source Co., Ltd., said the company’s exports of smart wooden kitchen equipment to the U.S. have risen by about 20%. The increase stems from the uniform 10% tariff applied across countries, long-standing relationships with U.S. clients, and the ongoing shift of orders from China to Viet Nam.

However, she cautioned that this advantage is not guaranteed. With a flat tariff rate applied globally, competitive differences remain limited. Meanwhile, rising input costs, especially logistics and fuel, have significantly eroded profit margins.

U.S. demand shifts toward smart, ready-to-assemble furniture

“To respond, we have worked directly with clients to adjust materials, increase localization rates, and gradually shift to importing timber from the United States and Canada to optimize costs and meet origin requirements. The share of wood sourced from these markets has increased from 20% to about 50%,” Trinh said.

She added that the company has moved from an OEM (original equipment manufacturer) model to an ODM (original design manufacturer) model, participating more deeply in product design and development. It has also established warehousing and assembly operations in the United States to increase value-added and reduce tariff pressures. At the same time, the firm is expanding into Europe, Japan, and the domestic market, reducing its reliance on the U.S. from nearly 90% to about 60%.

Professor Tran Ngoc Anh of Indiana University said the U.S. Senate has recently passed the 21st Century Housing Act (HR64), aimed at helping Americans, especially first-time buyers, gain access to homeownership.

“The policy will spur the construction of millions of new homes while curbing speculative accumulation of single-family houses. Notably, it is expected to strongly stimulate first-time buyers, a segment that tends to favor ready-to-assemble (RTA) furniture - affordable, well-designed, and practical. This is a clear market signal for Vietnamese businesses,” he said.

In this context, he suggested that companies consider shifting from OEM to ODM models, focusing on modular furniture suited to manufactured housing, a segment prioritized for development. Firms should also proactively adopt standards such as FSC certification and comply with carbon emission regulations to meet increasingly stringent U.S. requirements, especially as potential Section 301 investigations into environmental practices and legal timber sourcing may emerge.

According to Huynh The Du of the University of Wisconsin Oshkosh, businesses should now review contracts, proactively negotiate cost-sharing mechanisms with partners, ensure supply chain transparency, tighten control over input documentation, and diversify export markets.

He also recommended that regulators establish a centralized coordination mechanism to monitor policy developments, provide timely updates to businesses, and strictly control the issuance of certificates of origin to prevent trade fraud and protect the reputation of Vietnamese goods.

From a bilateral perspective, while the United States pursues its own economic and political interests, it generally maintains a more constructive stance toward Viet Nam compared with many other countries. This presents an opportunity that should be leveraged through negotiation and dialogue.

However, seizing this opportunity requires not only government action but also active participation from the business community. Companies must provide information, articulate their needs, and demonstrate adaptive capacity. Only through close coordination can Viet Nam develop an effective strategy and sustain its position in trade relations with the United States.