Vietnam’s top leader, To Lam, has requested President Trump to delay imposing tariffs on Vietnamese goods for at least 45 days to prevent devastating the Vietnamese economy and raising prices for American consumers. The 46 percent tariff rate is among the highest any country faces and has left Vietnam anxious. Despite recent collaborations between the US and Vietnam, these tariffs could harm both economies.
In a letter to President Trump, Mr. Lam suggested appointing a US representative to lead negotiations with a Vietnamese deputy prime minister, aiming to reach an agreement promptly. The US’s proposed tariffs would be harmful to Vietnam, accounting for 30 percent of the country’s total exports.
Vietnam is a significant part of the global supply chain, manufacturing goods for brands like Adidas and Nike. However, with the planned tariffs, it could risk 5.5 percent of its GDP, according to ING. The Biden administration values Vietnam’s role in the Pacific and as a counterbalance to China’s influence in the region.
While Vietnam has been keen on strengthening relations with the US, recent events cast doubts on the reliability of the US’s commitments. The Trump administration’s focus on tariffs instead of strategic values may strain the relationship between the two countries.
In light of the proposed tariffs, Mr. Lam needs to ensure a strong economic performance as he leads Vietnam’s ruling Communist Party. Despite efforts to improve relations with the US, including deals on LNG imports and technology services, the potential impact of tariffs remains a significant concern for Vietnam’s economy.
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