The United States has temporarily suspended a 46% tariff on Vietnam, with the first round of negotiations on May 7 focusing on trade fairness.

Taiwan • Business • 05/05 15:03
The United States has temporarily suspended a 46% tariff on Vietnam, with the first round of negotiations on May 7 focusing on trade fairness.

The United States originally planned to impose a 46% tariff on Vietnamese goods starting April 9, but after various negotiations, the measure has been delayed by 90 days. Vietnamese Prime Minister Pham Minh Chinh confirmed on May 5 that the two sides will hold the first round of tariff talks on May 7, with a focus on safeguarding Vietnam's interests and advancing fair trade. Vietnam has sent a technical team to the U.S. and developed strategies to mitigate the tariff impact, supporting businesses and workers.

Key Updates

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05/05 17:01

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05/05 15:03

The United States has temporarily suspended a 46% tariff on Vietnam, with the first round of negotiations on May 7 focusing on trade fairness.

The United States originally planned to impose a 46% tariff on Vietnamese goods starting April 9, but after various negotiations, the measure has been delayed by 90 days. Vietnamese Prime Minister Pham Minh Chinh confirmed on May 5 that the two sides will hold the first round of tariff talks on May 7, with a focus on safeguarding Vietnam's interests and advancing fair trade. Vietnam has sent a technical team to the U.S. and developed strategies to mitigate the tariff impact, supporting businesses and workers.

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U.S. Tariff Policy and Suspension Decision

In early April 2025, President Trump of the United States announced the imposition of high tariffs on imports from multiple countries, including Vietnam, as part of a new series of global trade policies. Specifically, starting April 5, the U.S. implemented a 10% baseline tariff on all imports and planned to impose an additional 46% reciprocal tariff on Vietnamese goods starting April 9. This move drew significant attention from the Vietnamese government and business community.

However, after multiple countries expressed concerns and sought negotiations, the U.S. government announced in mid-April a 90-day suspension of the new tariff measures for 75 trading partners, excluding China. Vietnam was among these countries. Nonetheless, the 10% baseline tariff remained in effect, exerting substantial pressure on Vietnamese exporters.

Vietnam's Response and Negotiation Preparations

In response to the sudden tariff policy, the Vietnamese government demonstrated a calm and proactive attitude. Prime Minister Pham Minh Chinh noted that Vietnam had adopted diverse and flexible countermeasures, achieving initial results. On May 1, Vietnam dispatched a delegation of technical experts to the U.S. to discuss bilateral trade and economic issues with relevant U.S. agencies, preparing for the first formal negotiations scheduled for May 7.

During a parliamentary session on May 5, Pham Minh Chinh stated that Vietnam was one of the six countries prioritized by the U.S. for negotiations, indicating both parties' willingness and importance in resolving the dispute. He emphasized that the negotiations would proceed in the spirit of "protecting Vietnam's legitimate rights and interests" and committed to promoting "fair and sustainable trade" while ensuring compliance with international agreements Vietnam has signed.

Policy and System Adjustments

In response to U.S. concerns about trade fairness, the Vietnamese government has begun formulating several policy adjustments. Pham Minh Chinh pointed out that the government would promptly issue strategic trade control regulations to strengthen the inspection of product origins, preventing goods from other countries from being falsely labeled as made in Vietnam to enter the U.S. market. This measure also addresses the U.S.'s long-standing concern about "origin laundering."

Additionally, Vietnam will actively expand export markets and supply chains to reduce reliance on a single market. The government and various ministries are intensifying efforts to develop support programs to assist businesses and workers affected by U.S. tariff policies, including financial subsidies, tax reductions, and employment transition support.

Vietnamese Prime Minister's Stance and Appeals

Prime Minister Pham Minh Chinh has repeatedly emphasized in public statements that Vietnam hopes to establish a "balanced and mutually beneficial" trade relationship with the U.S. He urged the U.S. to recognize Vietnam as a market economy as soon as possible and lift restrictions on high-tech product exports to promote technology transfer and industrial advancement between the two countries.

He also noted that while U.S. tariff policies pose challenges to Vietnam's economy, they also present an opportunity for economic structural transformation. Vietnam will continue to promote regulatory reforms to ensure cooperation with the U.S. respects sovereignty and international commitments.

Bilateral Trade Background and Future Negotiation Focus

According to Vietnamese official data, in the first quarter of 2025, Vietnam's total exports to the U.S. reached $31.4 billion, a 22% year-on-year increase; during the same period, imports from the U.S. amounted to $4.1 billion. The significant volume of bilateral trade and Vietnam's trade surplus with the U.S. are among the focal points of U.S. attention.

Future negotiations are expected to focus on the following key areas:

  • Adjustment of tariff rates and phased implementation mechanisms;
  • Cooperation mechanisms for origin certification and prevention of trade fraud;
  • Relaxation of U.S. restrictions on high-tech product exports to Vietnam;
  • Cooperation on supply chain security and sustainable development.

References

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