Vietnam, US Launch High-Level Talks As Tariff Threat Looms
It marked the first in-person negotiation at this level as the two countries face the possibility of a 46 per cent tariff on Vietnamese goods entering the US market.
Vietnam and the United States have initiated direct ministerial-level discussions in response to the threat of a substantial US import tariff, signalling a new phase in bilateral trade engagement. The meeting took place on Friday in Jeju, South Korea, on the sidelines of the 31st APEC Ministerial Meeting on Trade.
It marked the first in-person negotiation at this level as the two countries face the possibility of a 46 per cent tariff on Vietnamese goods entering the US market, reported Reuters.
The Vietnamese Ministry of Industry and Trade released a statement on Saturday, highlighting the significance of the dialogue. The ministry described the meeting as a demonstration of both nations' shared objective to maintain a dependable and constructive economic and investment partnership.
Ongoing Efforts to Mitigate Trade Imbalance
These direct negotiations follow an earlier phone conversation last month between Vietnam’s trade minister Nguyen Hong Dien and US Trade Representative Jamieson Greer. That call officially kicked off the negotiation process between the two governments.
According to the Vietnamese trade ministry, “USTR Greer agreed with Vietnam's current approach and proposal.” The statement added, “The United States hopes that with the mutual efforts, the technical-level negotiations in the coming days will yield positive results.”
For now, Washington has postponed the implementation of the 46 per cent import tariff until July. However, the uncertainty surrounding the tariff continues to pose a significant threat to Vietnam’s export-driven economy. The United States is Vietnam’s largest export destination, and the Southeast Asian country also hosts major foreign manufacturers who rely on access to the US market.
Also read : Moody's Downgrades Last Remaining Top Tier Credit Rating For US, What Does It Mean?
Vietnam Responds with Policy Adjustments
As part of its strategy to address the trade imbalance, Hanoi has taken steps to reduce the trade surplus with the US, which stood at $123.5 billion last year—the fourth-highest among all US trading partners. These measures included lowering tariffs on a wide range of US-bound goods and tightening controls to prevent Chinese products from being rerouted through Vietnam into the American market.
Both countries appear committed to resolving the issue diplomatically. The outcome of these talks will be closely watched, as it could shape the trajectory of US-Vietnam economic relations and have a ripple effect across global supply chains.
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