Northern Vietnam's boom shows that tariffs on one country tend to spread industrialization to others nearby, creating unintended economic consequences beyond the initial dispute.
In 2018, Vietnam experienced a significant economic transformation as businesses relocated from China, due in part to high tariffs, leading to double-digit growth rates.
Exporters preferred to move quickly to Vietnam to reduce U.S. dependence on China, resulting in a tripled trade deficit with Vietnam, second only to China and Mexico.
The rise of northern Vietnam underscores the complexities of modern trade wars where economic benefits can accrue to unintended beneficiaries rather than the involved nations.
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