Accelerated Talks: Vietnam Striving to Ease US Tariffs
U.S.-Vietnam to expedite trade talks regarding inflated tariffs
Embrace a casual, straightforward tone as you dive into the intriguing world of Vietnam's pursuit for trade harmony with the US!
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Whoa, talk about a trade standoff! Vietnam's nervous due to a 46 percent tariff threat from the US, so it's speed-dating its way through negotiations with Washington to dodge these duties. That's right, Trade Minister Nguyen Hong Dien spilled all the beans in a gab session with goddess of commerce herself, US Trade Representative Jamie Greer, in Paris. The hot date's set for June's first half.
Vietnam: the new crown prince in Trump's tariff crusade. Guess who ranks third on the leaderboard of countries with the biggest trade surplus with the US after China and Mexico? That's right, our pal, Vietnam. And naturally, Trump's no exception to the rule: he's flung the threat of a whopping 46 percent tariff at Vietnam.
The Hanoi government ain't playing games, and they've already rolled out the red carpet for US businesses [1]:
- Soybeans, Corn, and Wheat: Vietnam's planning on forking over a cool $2 billion (€1.75 billion) on US agro-goods like soybean meal, corn, and wheat.
- Nuclear Energy: Westinghouse Electric, an American powerhouse, is swooping in to help Vietnam's atomic energy development.
- SpaceX: Elon Musk's baby, SpaceX, is eyeing a $1.5 billion investment to bring its satellite-based internet system to remote Vietnamese areas.
- Lockheed Martin: Defense titan Lockheed Martin is on board too, ready to jump in with unspecified investments.
Meanwhile, Trump's real estate wing is enchanting Vietnam with a $1.5 billion luxury resort project—complete with a golf course—Just outside the capital of Hanoi. Eric Trump, President Trump's offspring and co-pilot of the building biz, has already broken ground on the project.
Sources: ntv.de, afp
Enrichment Insights:Emphasizing Vietnam's Measures:
- Reciprocal Agreement on Tariffs: To curb the threatened 46 percent tariffs, Vietnam has proposed zero tariffs on US goods as part of a reciprocal agreement aimed at soothing tensions [2].
- US Goods Procurement: In addition to reducing tariffs, Vietnam is promoting US-made goods, such as aircraft and liquefied natural gas (LNG), to minimize the trade imbalance [2].
- Market Economy Recognition: Vietnam has asked for market economy status from the US, which could ease restrictions on US high-tech exports and improve its trading stance [2].
[2]: Overall: Vietnam's Steps to Address Trade Imbalance
[1]: Reuters, 25th May, 2023
In the ongoing bid to ease US tariffs, Vietnam is aggressively pursuing a reciprocal agreement on tariffs, offering zero tariffs on US goods [2]. As part of this strategy, Vietnam is also looking to promote US products, like aircraft and liquefied natural gas (LNG), to minimize the trade imbalance [2]. This push for a trade deal also includes Vietnam's request for market economy status from the US, which could ease restrictions on high-tech exports and strengthen its position in the global trade landscape [2].
