Donald Trump Announces Discussions with Vietnam’s Secretary General
President Donald Trump announced that he spoke with Vietnam’s Secretary General, Lam, who proposed to lower Vietnam’s tariffs on U.S. goods to “zero” if an agreement is reached. Trump posted: “Vietnam’s Secretary General Lam had a very productive call with me, and he told me that if Vietnam can reach an agreement with the United States, they would like to lower tariffs to zero.”
Trump released quotes regarding the zero-tariff deal with Vietnam. Source: Truth Social
Trump and his wife have invited Lam to visit Vietnam again. Trump added, “On behalf of our country, I thank him and I look forward to having a meeting in the near future.” This conversation took place amid significant changes in U.S. trade policy, as Trump imposed a 46% tariff on all goods imported from Vietnam, which will take effect next week. The new 46% tariff is the highest for Vietnam, one of Trump’s primary targets, and it will impact the $142 billion export market from Vietnam in 2024.
After Trump’s post, Nike’s stock price rose. Source: Google Finance
Following Trump’s post, Nike’s stock price increased. This rise is related to the fact that approximately 25% of Nike’s footwear comes from Vietnam.
Vietnam is optimistic about avoiding the impact of U.S. tariffs. In 2024, the direct export record from the U.S. to Vietnam stood at $13.1 billion, a figure that limits Hanoi’s ability to retaliate with its own tariffs. Thus, Vietnam leans towards diplomacy. Furthermore, Hanoi is also trying to avoid trade tariffs. During the recent visit of Industry and Trade Minister Nguyen Hong Dien to Washington, Vietnam secured $4.15 billion in deals with U.S. companies, including an LNG procurement agreement with ConocoPhillips, part of a $90.3 billion trade package for 2025-2030.
In a swift move after the elections, Secretary General Lam congratulated Trump, further demonstrating Vietnam’s commitment to diplomatic engagement. In addition, Vietnam has also implemented tariff reductions on various U.S. products announced on March 31, seen as a proactive measure to meet Trump’s demands for a more balanced trade relationship.
The 46% tariff rate has sparked confusion among Vietnamese leaders, especially given the Trump administration’s claim that it reflects a 90% tariff imposed by Vietnam on U.S. products. However, according to World Trade Organization data, Vietnam’s average applied tariff rate is 9.4%, with the trade-weighted average even lower at 5.1%, as reported by Reuters.
Even including a 10% value-added tax, criticized by Trump as a hidden barrier, the calculation of the 90% rate lacks clear evidence. Finance Minister Scott Bessent famously remarked that the rates for each country “represent their tariffs,” a comment that only deepens Hanoi’s frustration and uncertainty about the methodology behind the calculations.
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