Ho Chi Minh City, April 2025 – Amid global market volatility, Vietnam's luxury wood furniture export industry faces unprecedented challenges as the US – its largest market – announces new import tariffs. However, the decision to delay the implementation of these high tariffs for 90 days has opened a crucial window for domestic companies to seize opportunities and develop long-term strategies to cope with the changes.

As the US tightens tariffs, Vietnam’s wood industry faces major challenges

According to the U.S. Department of Commerce, the country plans to impose countervailing duties of up to 84% on imported goods from several countries. For Vietnam specifically, the announced tariff rate is 46%—a shocking figure for the business community. If implemented, this tariff would have a severe impact on the entire industry, especially given that Vietnam is currently the second-largest exporter of luxury furniture to the U.S., just behind China.

The U.S. is imposing these tariffs in an effort to counter subsidies, prevent trade fraud, or to balance the trade deficit. However, Vietnamese wood industry associations argue that most domestic companies comply with international trade regulations, use legally sourced materials, and maintain transparency in their supply chains.

90-Day Delay: A Valuable Opportunity to Accelerate

The U.S. is imposing these tariffs in an effort to counter subsidies, prevent trade fraud, or to balance the trade deficit. However, Vietnamese wood industry associations argue that most domestic companies comply with international trade regulations, use legally sourced materials, and maintain transparency in their supply chains.

Vietnamese luxury furniture exporters are now ramping up production, completing orders, and seizing this 'golden window' to secure deals with U.S. partners. Meanwhile, trade fairs and international exhibitions currently taking place in the U.S. have also seen the return of Vietnamese furniture brands.

Many of these Vietnamese luxury furniture brands are using this opportunity to strengthen their market position through bold communication strategies, improved packaging, and enhanced craftsmanship and eco-friendly materials—attributes highly favored by American consumers in the post-pandemic era.

Medium and Long Term: The Need for Adaptive and Transformative Strategies

Although the tariff has been temporarily delayed, the threat of U.S. trade protectionism remains. In the medium term, Vietnam’s wood industry must proactively develop risk response strategies, including diversifying export markets, restructuring supply chains, and investing in technology and design to enhance product value.

For the luxury furniture export segment in particular, companies need to focus more on building brands, securing sustainable raw materials, and enhancing design capabilities to win over demanding markets like the U.S. Brands that can tell compelling brand stories, use FSC-certified wood, and commit to reducing carbon emissions will have a clear competitive advantage.

For the luxury furniture export segment in particular, companies need to focus more on building brands, securing sustainable raw materials, and enhancing design capabilities to win over demanding markets like the U.S. Brands that can tell compelling brand stories, use FSC-certified wood, and commit to reducing carbon emissions will have a clear competitive advantage.

In addition, industry associations can play a crucial role in supporting small and medium-sized enterprises by offering legal consulting, developing industry standards, and assisting with market access through digital platforms and cross-border e-commerce.

Accelerating Digital Transformation and International Marketing

With increasing competition, investing in digital transformation is essential. Luxury furniture exporters need to upgrade their websites, implement customer relationship management (CRM) systems, and leverage platforms like Amazon, Wayfair, or Alibaba to expand distribution channels. At the same time, building a clear brand identity, showcasing high-quality visuals, and crafting U.S.-aligned content marketing strategies are crucial steps.

An effective marketing strategy during this period is to blend the 'Vietnamese craftsmanship' element with the minimalist, nature-inspired lifestyle trend favored by American consumers. Furniture made from natural wood, with a clean, sustainable, and aesthetically pleasing design, is Vietnam’s key competitive advantage.

The Role of the Government and Trade Agreements

Finally, strong government support is essential. Tax incentives, access to green credit for the wood industry, training in design and marketing, and international trade promotion policies will serve as key levers to enhance the competitiveness of Vietnam’s luxury furniture sector.

At the same time, taking full advantage of free trade agreements like EVFTA, CPTPP, and RCEP to expand into new markets is a must. With a well-coordinated, long-term export strategy, Vietnam has the potential to become Asia’s leading hub for luxury furniture manufacturing in the next decade.

Conclusion

The new U.S. tariff policy serves as a critical wake-up call for Vietnam’s wood and luxury furniture export industry. In the short term, businesses must seize the 90-day tariff delay to maximize order fulfillment. In the long run, only companies with the ability to adapt, operate transparently, and innovate will be able to survive and thrive in today’s volatile global trade environment.

Opportunities still exist — and if the timing is right, luxury furniture "Made in Vietnam" can sustainably conquer the U.S. market.

(Information compiled from multiple sources)