The United States and Vietnam have commenced a second round of trade negotiations in Washington this week, as both sides work to avert the imposition of a punitive 46% tariff that could severely impact Vietnam’s export-driven economy.
Citing a statement from Vietnam’s Ministry of Industry and Trade, Reuters reports formal negotiations began Monday and will continue through May 22. Trade Minister Nguyen Hong Dien is accompanied by officials from the central bank and Ministry of Finance. The ministry noted that the discussions aim to address “fundamental issues of mutual concern” and to “accelerate the negotiation process” .
This second round follows initial talks earlier this month and a bilateral meeting last week between Minister Dien and U.S. Trade Representative Jamieson Greer on the sidelines of an APEC summit in South Korea. While the Trump administration had threatened to raise tariffs on certain Vietnamese exports to 46%, implementation has been delayed until July, with an interim rate of 10% currently in place.
The potential escalation comes as Washington intensifies scrutiny of Vietnam’s $123 billion trade surplus with the U.S. in 2024. U.S. officials have accused Hanoi of facilitating Chinese trans-shipments to bypass American tariffs—an allegation Vietnam denies but has taken steps to address. These include restrictions on re-exports of Chinese goods and increased purchases of American products, including Boeing aircraft and agricultural commodities.
Adding texture to Vietnam's trade negotiations is an opportunity to curry favor with the Trump family. As reported by Vietnam News Agency and the Financial Times, Eric Trump was expected in Vietnam to discuss about a potential Trump Tower in Ho Chi Minh City.
Wednesday Reuters reported that Vietnam's prime minister and Eric Trump held a groundbreaking ceremony for a $1.5 billion luxury residential development with three 18-hole golf courses outside Hanoi.
Official comment on the project’s timing in relation to the trade negotiations has not been provided.
Seperately
Comments
No comments on this item Please log in to comment by clicking here