U.S. Imposes 46% Tariff on Vietnam; Mongolia Gains Edge as Low-Tariff Route

The United States has announced an updated set of import tariffs on goods from other countries, sending shockwaves through the global economy. Following the news, Asian stock markets turned red on April 4, with Japan’s Nikkei 225 falling by 2.77% and Hong Kong’s Hang Seng Index dropping by 1.52%.

In response to the looming threat of a trade war, China had already begun taking preventive measures by relocating some company operations to Vietnam in an attempt to avoid tariffs. However, the new tariff plan imposes a 46% rate on imports from Vietnam, making it less of a safe haven.

Among these developments, Mongolia stands out with only a 10% tariff imposed on its exports to the U.S., positioning the country as a potential alternative route to bypass China’s high tariffs. As of December last year, Mongolia exported $166 million worth of goods to the U.S., the majority of which consisted of unrefined or semi-refined gold. Chinese companies are increasingly attempting to circumvent U.S. sanctions and high tariffs—one recent example is the attempt to ship NVIDIA’s Blackwell chips to China via Vietnam, which was exposed. Now that Vietnam is also facing high tariffs, Mongolia’s relatively low tariff rate may present a new opportunity.