Vietnam's Footwear Industry Stumbles: US Exports Plunge 27% Amid Lingering Tariff Pressures
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- October 06, 2025
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Vietnam's thriving footwear industry, a crucial pillar of its export economy, faced a significant setback in September as exports to the United States plummeted by a staggering 27%. This sharp decline, amounting to an estimated reduction of hundreds of millions of dollars in trade value, is largely attributed to the ongoing impact of tariffs initially implemented during the Trump administration, highlighting the lasting ripple effects of global trade tensions.
The latest trade data paints a concerning picture for Vietnamese manufacturers who have increasingly relied on the US market.
While Vietnam has strategically positioned itself as an alternative manufacturing hub amidst the US-China trade war, the very tariffs designed to pressure China appear to be casting a long shadow, indirectly or directly impacting supply chains and consumer demand for goods originating from the broader Southeast Asian region.
Industry analysts point to a confluence of factors contributing to this substantial drop.
Elevated inventory levels in the US, combined with cautious consumer spending in a high-inflation environment, have softened demand for non-essential goods like footwear. However, the consistent mention of 'Trump tariffs' suggests that either existing Section 301 tariffs on Chinese-made components (which might be used in Vietnamese production) or broader uncertainties in US trade policy are making American buyers hesitant to commit to large orders from Vietnam.
The 27% downturn represents not just a statistical blip but a real challenge for the thousands of workers employed in Vietnam's footwear factories.
Many companies are grappling with reduced orders, potentially leading to production cuts, layoffs, or a slowdown in expansion plans. This situation underscores the delicate balance of global trade and how policy decisions, even those from previous administrations, can have prolonged and far-reaching consequences on international supply chains and national economies.
Moving forward, Vietnamese authorities and industry leaders are likely to explore strategies to mitigate these impacts.
This could involve diversifying export markets, seeking new trade agreements, or advocating for a review of existing tariff structures. The September figures serve as a stark reminder that even robust manufacturing hubs like Vietnam are not immune to the complexities and volatilities of the global economic landscape and the strategic use of trade as a political tool.
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