Starlink Becomes a New Bargaining Chip in U.S. Trade Negotiations: Vietnam and Lesotho Sign Agreements, India Could Be the Next Target

Taiwan • Politics • 05/09 07:08
Starlink Becomes a New Bargaining Chip in U.S. Trade Negotiations: Vietnam and Lesotho Sign Agreements, India Could Be the Next Target

President Trump of the United States has used SpaceX's Starlink satellite network service as an informal negotiation tool in global tariff negotiations. The U.S. State Department is urging several countries to approve Starlink's market entry, with Vietnam and Lesotho already having signed agreements, and India potentially being the next target. This move is viewed as a strategy to enhance trade relations. The U.S. dollar index has seen a slight decline as the market focuses on U.S. trade policy and interest rate trends.

Key Updates

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In May 2025, during his second term, former President of the United States, Donald Trump, re-adopted the "strategic ambiguity" stance on Taiwan policy, which drew international attention. Trump did not make an explicit commitment to defend Taiwan, as some former officials believe this strategy helps maintain regional stability. At the same time, the Trump administration imposed high tariffs on Taiwan and its Indo-Pacific allies, which increased doubts among regional countries about U.S. commitments, impacting both economic and diplomatic relations. This article examines the policy background and the warnings issued by former officials, highlighting the tense relationship between U.S. policy towards Taiwan and its Indo-Pacific strategy.

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At the Saudi-American Investment Forum, U.S. Treasury Secretary [Name] emphasized the importance of cooperation with allies in addressing challenges posed by China and Russia, and noted that Asian trade negotiations are progressing smoothly.

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05/10 07:03

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05/09 11:04

High-level U.S.-China economic and trade talks are held in Switzerland: He Lifeng and the U.S. Treasury Secretary discuss tariff issues

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05/09 07:08

Starlink Becomes a New Bargaining Chip in U.S. Trade Negotiations: Vietnam and Lesotho Sign Agreements, India Could Be the Next Target

President Trump of the United States has used SpaceX's Starlink satellite network service as an informal negotiation tool in global tariff negotiations. The U.S. State Department is urging several countries to approve Starlink's market entry, with Vietnam and Lesotho already having signed agreements, and India potentially being the next target. This move is viewed as a strategy to enhance trade relations. The U.S. dollar index has seen a slight decline as the market focuses on U.S. trade policy and interest rate trends.

05/09 02:00

The US-UK trade agreement sparks a sovereignty dispute: The US gains veto power on Chinese investments, and the film and television industries face tariff threats.

On May 9, 2025, UK Prime Minister Skel and US President Trump announced the UK-US trade agreement. The agreement provides tariff reductions for the UK's automotive and steel industries, but grants the US the right to review significant Chinese investments in the UK, raising concerns about UK sovereignty. The film and television industry was excluded from the agreement and is facing the threat of high tariffs from the US. As a result, the Skel government is facing criticism and pressure from domestic political and industrial circles.

05/08 23:02

Thaw in US-China Trade War: Ahead of Geneva Talks, Trump Stands Firm on Maintaining Tariffs, Video Translation Error Leads to Misunderstanding

The United States and China will hold high-level economic and trade talks in Geneva, Switzerland, on May 10 and 11, 2025. This will be the first face-to-face dialogue since the Trump administration imposed a 145% increase in tariffs on Chinese goods. China claims the talks are at the U.S.'s request, while the U.S. states that China initiated the contact. Trump emphasized that he would not lower tariffs before the negotiations, but if the talks go well, adjustments might be considered. A video interview with Trump circulating online was found to be misinformation due to translation errors that caused misunderstandings.

Starlink Enters Multiple Markets, Progresses Alongside Trade Negotiations

According to internal memos from the U.S. State Department obtained by The Washington Post and TechCrunch, the U.S. government is actively encouraging multiple countries to approve Starlink network services as part of trade negotiations. Although official documents do not explicitly list Starlink as a bargaining chip, officials from various countries have viewed it as a potential avenue to improve trade relations with the U.S.

Lesotho, a landlocked country in Africa, signed a 10-year operational agreement with Starlink within two weeks after the U.S. imposed a 50% reciprocal tariff. According to the memo, the Lesotho government hopes this move will be seen as a "signal of goodwill towards American businesses" to gain leverage in trade negotiations.

Vietnam announced in March 2025 that it would allow Starlink to begin trial operations locally, with a period until the end of 2030. Vietnam is currently facing a 46% U.S. reciprocal tariff and began its first formal negotiations with the U.S. on May 7. The Vietnamese government hopes to secure tariff reductions and improved trade conditions by opening up to Starlink and other measures.

In addition to Lesotho and Vietnam, countries like India, Somalia, the Democratic Republic of the Congo, Bangladesh, and Pakistan have also issued varying degrees of operational licenses to Starlink. The Indian government recently issued a "Letter of Intent," a formal document indicating preliminary agreement, allowing it to provide satellite communication services and amending previous regulatory conditions that hindered Starlink's entry.

Active Involvement of the U.S. State Department and Embassies

U.S. Secretary of State Marco Rubio has signed multiple documents instructing embassies abroad to assist in promoting Starlink's local regulatory approval. According to reports from MSNBC and Truthout, although these actions do not explicitly make Starlink a trade bargaining chip, in practice, Starlink's promotion often proceeds in parallel with trade negotiations.

For example, U.S. embassy personnel in Cambodia and Djibouti have pressured local governments to remove regulatory barriers for American satellite companies, specifically mentioning Starlink. The American Chamber of Commerce in Cambodia has publicly urged authorities to approve Starlink's entry in exchange for tariff exemptions on American goods.

India May Become the Next Country with a Trade Agreement

U.S. Secretary of Commerce Howard Lutnick stated in a Bloomberg TV interview that trade agreements with Japan and South Korea still require time for negotiation due to the adjustment of numerous tariff items. In contrast, India is seen as a "very actively engaged" negotiation partner and may become the next country to reach an agreement with the U.S.

Lutnick pointed out that India's complex trade structure involves about 7,000 tariff items needing modification, but both sides have already begun detailed discussions. According to a report by the Times of India, the Indian government has recently accelerated the approval process for Starlink, indicating its intention to use this to facilitate a trade agreement with the U.S.

U.S.-UK Trade Agreement Reached, Japan and South Korea Still Negotiating

President Trump announced on May 8 that the U.S. has reached a trade agreement with the UK, officially announced in the Oval Office of the White House. This is the first bilateral agreement completed since the U.S. implemented a new round of tariff policies.

In contrast, negotiations with Japan and South Korea are progressing more slowly. Japan's chief negotiator Ryosei Akazawa stated that many issues remain unresolved. South Korea is expected to resume substantive negotiations only after its parliamentary elections on June 3.

U.S. Dollar Index Slightly Declines, Market is Watching Trade and Interest Rate Policies

According to Trading Economics data, as of May 9, the U.S. Dollar Index (DXY) fell by 0.23% to 100.4052, slightly lower than the previous trading day's 100.6400. Nevertheless, the dollar remains in a relatively stable range, with the market keeping a watchful eye on U.S. trade policies and Federal Reserve interest rate trajectory.

According to a report by MoneyDJ, UBS predicts that the dollar will further depreciate by the end of 2025, with the dollar-yen exchange rate possibly dropping to 130. This expectation reflects the market's long-term focus on the U.S. trade deficit and global capital flows.

References

People Also Ask...

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Will India really be the next country to sign a trade agreement with the United States?

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What role does Starlink play in trade negotiations with the United States, and why did Vietnam and Lesotho sign an agreement?

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How has Starlink become the U.S.'s secret weapon in trade negotiations?