Vietnam Cuts Tariffs on U.S

Vietnam Cuts Tariffs on U.S. Goods to Ease Trade Tensions

Vietnam has announced major tariff reductions on U.S. imports, including cars, liquefied natural gas (LNG), ethanol, and agricultural products.

Vietnam Cuts Tariffs on U.S

The move aims to address its $123.5 billion trade surplus with the U.S. in 2024. Officials hope to avoid reciprocal tariffs threatened by former President Donald Trump.

On July 11-12, 1995, President Bill Clinton and Prime Minister Vo Van Kiet restored diplomatic relations. This marked a turning point after decades of estrangement following the Vietnam War.

Tariff Reductions on Key Products

• Automobiles: Reduced from 45–64% to 32%.
• LNG: Lowered from 5% to 2%.
• Ethanol: Cut from 10% to 5%.
• Ethane: Tariffs removed entirely.
• Agricultural products: Lower duties on chicken thighs, almonds, apples, and cherries.

Motivation and Strategy

Vietnam’s trade surplus with the U.S. is the world’s third-largest, behind China and Mexico. Officials seek to improve trade balances and reduce geopolitical risks. While the two countries share a Comprehensive Strategic Partnership, they do not have a free-trade agreement.

Vietnam’s Finance Ministry emphasized the importance of maintaining stable trade relations. The government also wants to prevent U.S. scrutiny over Chinese firms using Vietnam to bypass tariffs.

Implementation Timeline

The decree will take effect by late March, just before Trump’s planned April 2 tariff implementation. Vietnam has also approved Starlink satellite internet services and signed $4 billion in energy and mineral deals with U.S. firms.

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These steps show Vietnam’s proactive approach to mitigating risks from Trump’s trade policies. By making these adjustments, Vietnam hopes to avoid inclusion in the U.S. list of problematic trade partners, known as the “Dirty 15.”

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