“When trade and economic relationships are constantly shifting and supply chains must continuously adapt, a fixed tariff policy can no longer adequately balance the interests of producers, importers, and consumers,” said Tran Chi Dung, standing committee member of the Vietnam Logistics Business Association, in an interview with The Saigon Times. What is a “dynamic tariff”? The Saigon Times: Although the U.S. Supreme Court has just struck down the reciprocal tariffs announced by President Donald Trump’s administration in April 2025, tariffs are still expected to remain a consistent policy of the current U.S. presidency. In a recent webinar, you suggested that we should consider negotiating a “dynamic tariff” that adjusts by shipment. Could you explain this concept in more detail? Tran Chi Dung: This is a very new idea—no country or organization in the world has tried this method of taxation before. Even so, I believe it is both appropriate and feasible. Given current global trade trends, the traditional formula for calculating tariffs—based on cost, including production price plus transportation—has become somewhat outdated. Production costs depend heavily on origin, and many countries have introduced trade defense measures to penalize manufacturers that try to circumvent tariffs through third countries. Product costs also […]
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