Speeding Up Trade Talks: Vietnam Faces 46% US Tariffs
Hangin' with the ‘Murica
United States-Vietnam talks to speed up amidst escalating customs duties disputes.
In the wake of looming 46% U.S. tariffs, Vietnam's intent to rush negotiations with the States has become crystal clear. Minister of Trade, Nguyen Hong Dien, made the revelation in a recent rendezvous with U.S. Trade Representative, Jamie Greer, in Paris. The discussions are slated to commence in June's early months.
Targeted by Trump's Tariff Takedown
Vietnam, a key player in Trump's tariff tirade, boasts the third-largest trade surplus with the U.S., following China and Mexico. As retaliation, the chief tangled the Southeast Asian nation in a 46% tariff noose.
Balancing Trade and Diversifying Economy
To counteract this economic hit, the Hanoi administration has rolled out a series of moves to support US trade:
- Dollaring in 2 billion worth of US agricultural products, including soymeal, corn, and wheat, over the next three years.
- Encouraging US company Westinghouse Electric's mission to expand nuclear energy in the region.
- SpaceX, funded by none other than Elon Musk, is planning to spend $1.5 billion to introduce its satellite-based internet service to previously disconnected areas.
- Welcoming defense giant, Lockheed Martin, with open arms, keen on investment.
Meanwhile, the Trump Federal Corporation - yes, that's right - is busy building a luxury resort complete with a golf course in Vietnam, set to cost a cool $1.5 billion. Eric Trump, the Second-in-Command and son of the President, along with his wife, kicked off the groundbreaking ceremony for this project around Hanoi, two weeks prior.
A New Twist: Tariff Delay and Renegotiation
In a recent turn of events, the effective date for the tariffs, initially planned for April 2, 2025, has been postponed to April 10, 2025, and will now not take effect until July 9, 2025. These timelines provide ample opportunity for both parties to reconsider and renegotiate matters at hand.
[1] afp
[2] USTR
Bonus Insights
With negotiations now set to begin, the fate of Vietnam's economy remains uncertain. If the tariffs are ultimately imposed, it could lead to significant job losses and economic turmoil. Moreover, the tariffs could potentially strain Vietnam's diplomatic relations with the U.S., complicating its geopolitical position between the U.S. and China. The disruption of global supply chains due to reduced reliance on Chinese goods may also occur, leading to increased costs and delays in production.
The proposed tariffs carry substantial economic weight for Vietnam, making diplomatic and trade negotiations an essential step to mitigate potential impacts.
- Amidst the proposed tariffs, Vietnam's government has been taking steps to address their employment policy, such as supporting US trade and encouraging investments from US companies like Westinghouse Electric and Lockheed Martin, in an attempt to balance their trade and diversify their economy.
- In the midst of policy-and-legislation discussions surrounding trade and tariffs, Vietnam's community policy is also being influenced by political developments, particularly in relation to its relations with the United States, as shown by the potential economic impacts of the tariffs on their employment sector and general news.
