 "Vietnam agrees to slash tariffs to zero after being hit by 46% levies, claims Trump")
US President Donald Trump Friday (April 4) announced Vietnam wanted to strike a deal on tariffs with US after Washington slapped a whopping 46 per cent levies on the goods coming from the Southeast Asian nation. The US leader said Vietnam had agreed to slash their tariffs to zero if a deal was reached.
Trump declared this after having a “very productive" call with To Lam, General Secretary of the Communist Party of Vietnam.
“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the US," Trump said on Truth Social.
On Thursday, Vietnamese Prime Minister Pham Minh Chinh ordered the immediate formation of a “rapid response team” following Trump’s announcement of sweeping tariffs a day earlier.
In a separate statement, the government confirmed that Deputy Prime Minister Ho Duc Phoc would be traveling to the United States for a “working visit.”
American tariffs on Vietnam targeted sectors including apparel, furniture and toys, with analysts warning of potential price hikes for American consumers.
In response, the Vietnamese government has formally requested a one to three-month delay in the tariffs, hoping to create space for negotiations. According to Reuters, Hanoi is also preparing a goodwill package, planning to ramp up purchases of American goods like aircraft and liquefied petroleum gas, while easing investment conditions for American companies operating in Vietnam.
Impact Shorts
More ShortsVietnamese stocks have suffered a bloodbath since Trump’s announcement, with its benchmark stock index dropping 8.1 per cent. US firms having manufacturing units in Vietnam have also seen their stocks tumble, including Nike, American Eagle, Wayfair, Deckers, and Hasbro.
During Trump’s first term, Vietnam became a top choice for firms looking to abandon China for greener pastures overseas.
The Footwear Distributors and Retailers of America says that nearly two-thirds of all footwear imports into the US originated from Vietnam in 2023.
(With inputs from agencies)
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