President Donald Trump announced on Friday that he had a “productive call” with To Lam, the General Secretary of the Communist Party of Vietnam.
During this conversation, it was revealed that Vietnam is eager to negotiate a deal with the United States to reduce tariffs on U.S. goods to zero. This development comes shortly after Trump implemented new tariffs, with Vietnam facing one of the highest rates at 46%.
Trump shared details of the call on Truth Social, expressing gratitude for the conversation and his anticipation of future discussions.
Vietnam’s strategic position as a significant manufacturing hub for major American brands, including Nike, Adidas, and Patagonia, underscores the importance of these negotiations.
Following rising trade tensions with China, many U.S. companies have expanded operations in Vietnam, leading to a 19% increase in U.S. imports from the country, reaching $136.6 billion from 2023 to 2024.
The economic relationship is crucial, as Vietnam’s exports to the U.S. constitute about 30% of its gross domestic product, the highest among America’s key trading partners.
However, Trump’s tariffs pose a threat to Vietnam’s economy and could lead to increased costs for American companies, raising concerns that these expenses will ultimately be passed on to U.S. consumers.
Trump insists that the tariffs are designed to encourage American companies to relocate their manufacturing back to the United States.
In contrast, other countries are responding to the tariffs differently.
China has announced a 34% tariff on U.S. goods in retaliation to Trump’s own tariffs, while Canada and the European Union plan to impose similar retaliatory measures.
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