US President Donald Trump announced Vietnam's willingness to consider zero tariffs on US goods as part of a trade agreement.
Terms of Tariff Deal
In a post on Truth Social, Trump reported a productive conversation with Vietnam's Communist Party General Secretary To Lam, who offered to reduce tariffs on American goods to zero if an agreement is reached. Trump stated: “Just had a very productive call with To Lam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.”
Economic Impact on Vietnam
The newly imposed tariff of 46% on all imported goods from Vietnam, effective next week, poses significant economic challenges for the country. In 2024, the US imported $142 billion worth of goods from Vietnam. Vietnam, in turn, is looking to minimize the risk of retaliation since direct exports from the US to Vietnam were recorded at $13.1 billion.
Responses and Future Negotiations
During the phone call, General Secretary To Lam invited Trump and his wife to visit Vietnam again. Trump expressed gratitude on behalf of the country and indicated a desire for a meeting soon. This initiative is also part of a broader trade package between the two nations, which includes $4.15 billion in deals signed during a recent visit to Washington by Vietnam's Minister of Industry and Trade.
The trade discussions between the US and Vietnam illustrate the diplomatic efforts by both parties amid rising trade tensions and new tariff initiatives. Future negotiations are expected to focus on creating a more balanced trade partnership.
