Vietnam negotiates with US on tariff elimination: Basis of agreement revealed
Hanoi agrees to a range of commitments to the US (Illustrative photo: Getty Images)
Donald Trump's high tariffs paved the way for a strategic trade agreement between Vietnam and the US. Hanoi has pledged to purchase more American weapons and equipment, according to Reuters.
The government has committed to buying more US goods, including defense and security products, and has requested a 45-day delay in the implementation of tariffs.
Additionally, Hanoi will push for accelerated deliveries of commercial aircraft that Vietnamese airlines have ordered from the US.
Vietnam has requested the US to delay the imposition of the 46% tariffs announced by President Donald Trump last week to allow more time for negotiations.
"Vietnam was seeking to negotiate with the US side for balanced and sustainable trade, in line with the interests of the two sides," stated the government’s head.
On Friday, April 4, Trump and Vietnamese President To Lam agreed during a phone call to discuss a deal to cancel the tariffs. The American leader called the conversation very productive.
On Monday, April 7, the government indicated that Hanoi would review issues such as monetary policy, exchange rates, non-tariff barriers, and ensuring the correct origin of goods.
Vietnam is a key regional manufacturing hub for many Western companies. Last year, the country had a positive trade balance with the US, its largest export market, worth over $123 billion.
Since the lifting of the arms embargo in 2016, US defense exports to Vietnam have been primarily limited to coast guard vessels and training aircraft.
According to Reuters sources, last year, discussions were held regarding the sale of Lockheed Martin C-130 Hercules military transport aircraft to Hanoi.
US import tariffs
On April 2, US President Donald Trump signed an executive order imposing customs tariffs on imports from most countries worldwide. Specifically, a 46% tariff was set for imports from Vietnam.
Recently, Trump held negotiations with representatives from Vietnam, India, and Israel about striking individual trade agreements that could reduce the tariffs.
The White House leader also expressed Vietnam's willingness to fully eliminate tariffs for the US.
