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regular-article-logo Friday, 25 April 2025

Vietnam leader urges Trump to delay imposing tariffs by 45 days, offers to drop US duty to zero

Imposition of 46% tariff on Vietnam also presents a sharp contrast to Washington’s recent embrace of Hanoi as an important bulwark against China and a manufacturing destination for many American apparel brands

Tung Ngo, Sui-Lee Wee Published 07.04.25, 09:43 AM
To Lam

To Lam File picture

Vietnam’s top leader, To Lam, has asked President Donald Trump to delay the imposition of tariffs for at least 45 days so the two sides can avert a move that would devastate the Vietnamese economy and raise prices for American consumers.

The 46 per cent tariff rate the US has said it will impose on Vietnam is among the highest any country faces. The prospect of such a steep tariff has left Vietnam with a sense of whiplash and deep apprehension. It also presents a sharp contrast to Washington’s recent embrace of Hanoi as an important bulwark against China and a manufacturing destination for many American apparel brands.

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Lam’s proposal to President Trump was laid out in a letter dated Saturday, according to a copy obtained by The New York Times. In the letter, Lam called on Trump to appoint a US representative to lead negotiations with Ho Duc Phoc, a Vietnamese Deputy Prime Minister, “with the goal of reaching an agreement as soon as possible”.

Lam had been one of the first world leaders to reach out to Trump after the tariffs were announced. In a phone call, he offered to reduce tariffs on US imports to zero, and urged Trump to do the same, according to the Vietnamese government. Vietnam has said its tariffs on US goods is an average of 9.4 per cent.

Trump later described the call as “very productive”.

In his letter, Lam asked Trump to meet him in person in Washington at the end of May “to jointly come to an agreement on this important matter, for the benefit of both our peoples and to contribute to peace, stability and development in the region and the world”.

Vietnam’s foreign ministry did not respond to a request for comment.

Vietnam, which faces punishingly high tariffs along with China, Cambodia and Laos, would be the hardest-hit economy in Asia if the tariffs are imposed as planned on Wednesday, according to economists. The US is Vietnam’s largest export market, accounting for about 30 per cent of the country’s total exports. A 46 per cent tariff rate would put 5.5 per cent of Vietnam’s gross domestic product at risk, according to ING, a Dutch financial services company.

It would also hurt American consumers, because Vietnam is crucial in the global manufacturing supply chain. For decades, the country has built its economy around attracting foreign investment with cheap labour and a young workforce. It is now a top manufacturer of brands such as Adidas and Lululemon. Nike makes about 50 per cent of its footwear in Vietnam.

After Trump imposed tariffs on China during his first term, Vietnam benefitted from companies shifting their manufacturing there.

Within Hanoi, the recent moves by the Trump administration have cast doubts on the reliability of the US, which in recent years has assiduously courted Vietnam. In 2023, the two former enemies cemented a new strategic relationship. Even though Vietnam fought a decades-long war against the US, surveys had shown that many Vietnamese welcomed the political and strategic influence of the US.

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