President Donald Trump announced on Friday that Vietnam has agreed to eliminate tariffs on all U.S. goods if the two parties can negotiate a deal.
This could be a positive sign for President Trump’s controversial tariff strategy. On Wednesday, he announced sweeping global tariffs on other nations to pressure them into negotiating more favorable trade deals for the United States.
In a post on Truth Social, Trump said he “had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam.”
The president continued, noting that Vietnam “wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.”President Trump imposed a 46 percent tariff on Vietnamese imports. The new duties are set to take effect next week.If the U.S. and Vietnam can reach a deal, then it would benefit companies like Nike, which manufactures 25 percent of its footwear in Vietnam.This could be some good news – especially on the tariff front. It might mean that American product could become more competitive in Vietnam, which will benefit U.S.-based corporations. Vietnam is seeing a growth of its middle class, which could open new doors for trade.
It would also mean lower prices for American consumers purchasing products manufactured in Vietnam. This would include apparel, furniture, electronics, and several others. Other major corporation have used Vietnam as a significant manufacturing hub, which suggests cheaper imports might. Lower production expenses while boosting profit margins.
A tariff reduction of this type could also strengthen the economic relationship between the U.S. and Vietnam. This might be especially critical if the U.S. seeks to diversify its supply chains away from China. Less reliance on the Chinese Communist Party (CCP) could bolster Washington’s negotiating position.
There is also the possibility that other nations might follow Vietnam’s lead – especially if the deal benefits the country over the long term.
Of course, there is no deal just yet. But it appears that Vietnam is willing to make some important concessions. Either way, this is a promising sign.
