As the Trump administration ramps up its trade offensive, nations are reeling from steep demands to even begin tariff talks. First, the UK faced a barrage of ultimatums; now, Vietnam is in the crosshairs, grappling with 46% tariffs on its U.S. exports. Below, we explore Vietnam’s negotiations with Team Trump and the high-stakes concessions on the table.
Vietnam’s Efforts in Discussions
Vietnam has taken swift and proactive steps to negotiate tariff relief:
• Communist Party General Secretary To Lam was among the first world leaders to contact Trump after the tariff announcement. On April 4, 2025, they held a phone call described by Trump as “very productive,” where Lam proposed eliminating tariffs on U.S. goods.
• Deputy Prime Minister Ho Duc Phoc was despatched to Washington, meeting U.S. Trade Representative Jamieson Greer on April 9, 2025, to initiate formal trade talks. These discussions aimed to reduce non-tariff barriers and explore a bilateral trade agreement.
Proposed Concessions
Vietnam offered to:
• Reduce tariffs on U.S. imports to zero, addressing the 9.4% average tariff Vietnam applies.
• Increase purchases of U.S. goods, such as Boeing planes, agricultural products, and potentially oil and gas.
• Tighten controls on Chinese goods transshipped through Vietnam to evade U.S. tariffs, including new declaration and approval procedures.
• Approve favourable conditions for Starlink, Elon Musk’s satellite communication service, and potentially accelerate a $1.5 billion Trump resort project. (Yes, you heard that right: a $1.5 billion Trump resort. Is this even legal? Perhaps that can be my next project.)
• Business Advocacy: The Vietnam Chamber of Commerce and Industry and the American Chamber of Commerce in Hanoi jointly urged the Trump administration to delay the tariffs, arguing they would harm bilateral trade and U.S. consumers.
The Trump Administration’s Demands
The Trump administration’s demands reflect its broader “America First” trade agenda, focusing on reducing trade deficits, curbing transshipment, and securing economic concessions. Specific demands include:
1. Addressing the Trade Deficit:
• Trump has emphasised Vietnam’s $123.5 billion trade surplus, with Vietnam exporting $15 worth of goods to the U.S. for every $1 imported.
• The administration seeks significant increases in Vietnamese purchases of U.S. goods to balance trade. Treasury Secretary Scott Bessent has highlighted Vietnam’s need to buy more American products, such as energy and agricultural goods, to offset the deficit.
2. Cracking Down on Transshipment:
• A key demand is for Vietnam to stop Chinese goods from being relabeled as “Made in Vietnam” to bypass U.S. tariffs on China. Trade Counselor Peter Navarro called Vietnam “a colony of communist China” for facilitating transshipment, a practice the administration views as “non-tariff cheating.”
• Vietnam has proposed stricter trade controls, including new procedures to verify the origin of goods exported to the U.S.
3. Eliminating Non-Tariff Barriers:
• The administration is pushing Vietnam to reduce non-tariff barriers, such as regulatory restrictions or currency manipulation, though specific barriers have not been publicly detailed.
• Navarro dismissed Vietnam’s zero-tariff offer as insufficient, emphasising that non-tariff issues are the priority.
4. Strategic Concessions:
• The Trump administration appears to favour deals that align with broader U.S. interests, such as approving Starlink or facilitating U.S. investments, namely the reported Trump resort.
• Trump has signaled openness to negotiations but insists on substantial concessions, with no guaranteed tariff reductions. Treasury Secretary Bessent noted that offers must be “believable” and address long-standing trade imbalances.
Current Status and Challenges
While Vietnam has made significant offers, the Trump administration has not committed to reducing the 46% tariff, and talks remain ongoing. The administration’s focus on Vietnam as a conduit for Chinese goods complicates negotiations, as Hanoi must balance U.S. demands with its economic ties to China, its largest trading partner. Chinese President Xi Jinping’s visit to Hanoi on April 14, 2025, underscored this tension, with Xi urging Vietnam to oppose “unilateral bullying” (implicitly the U.S.), while Vietnam signed trade agreements with China.
Broader Context
Vietnam’s negotiations are an early test of Trump’s tariff strategy, which has shaken global markets and drawn criticism for its economic impact. The administration’s hardline stance, as articulated by Navarro and Bessent, suggests that Vietnam must offer substantial concessions to secure relief. However, Vietnam’s economic reliance on U.S. exports (30% of GDP) gives it little leverage, forcing it to navigate a delicate balance between appeasing the U.S. and maintaining ties with China.
References
Vietnam asks Trump to delay implementation of tariffs while the two sides negotiate, John Ruwitch, NPR
Vietnam’s Tariffs Offer Rejected by Trump Adviser – ‘Not a Negotiation’, Hugh Cameron, Newsweek
Exclusive: Facing Trump tariffs, Vietnam eyes crackdown on some China trade, Francesco Guarascio, Reuters News
With tariff gambit, Trump pushes Vietnam to choose between U.S. and China, Washington Post (paywalled)
Trump threatened Vietnam with a huge tariff. How’s that going over in Little Saigon?, Gustavo Arellano, Los Angeles Times
How Trump tariffs could push Vietnam into the arms of China, Rebecca Ratcliffe, The Guardian
As Trump threatens tariffs, Vietnam scrambles to avert economic disaster, Govi Snell, Al Jazeera
Trump’s tariff battle with China has ‘echoes of the Vietnam war’, US economist says, Phillip Inman, The Guardian
Trump, Vietnam’s Lam agree to discuss tariffs deal, to meet soon, Khanh Vu and Francesco Guarascio, Reuters News
China’s Xi urges Vietnam to oppose ‘bullying’ as Trump mulls more tariffs, Annabelle Liang, the BBC
Vietnam fast-tracks approval for Trump resort in mad dash to stave off tariffs: report, Travis Gettys, Raw Story
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The underlying problem that Canadian Prime Minister Carney correctly identified and exploited is the present reliance of successive American government relying upon loan moneys. So Canada went out and purchased several hundred million dollars worth of US government bonds at a cheap price and started the interest rate rise of US government bonds, a negative economic signal in the investment industry.
He also spoke with European Finance Ministers presently holding large quantum of US government bonds and co-ordinated a response to Trumpery bullying policies.
Then Trumpery’s ”dislike” of PRC CHINA is not ameliorated by the huge multi-trillion dollar holding of US government bonds.
US government bonds have risen from about 2.5% to 4.5% and are likely to rise even higher, meaning that government spending will be more expensive.
Perhaps Trumpery will have to ”encourage” the billionaires to pay Federal income and corporate taxes ….. but DO NOT hold your breath.
The 19th century economic powerhouse that became modern America was built on supplying the national population as it expanded west invading, displacing and dispossessing Indigenous Americans.
Now consider the economic potential of the combined SE Asian markets of India, Bangladesh, Vietnam, PRC China ….. about 4 BILLION persons requiring all the manufacturing output that currently goes to American and Europe.
I have long imagined the growth of an Asian centred bloc, freed from old rotten post colonial residuals, with a China centred core, no USA, growing and attracting, with European market inclusion, with Russian resources available, with immense populations of keen wouldbe advanced consumers, with unlimited future strength, wealth, domineering power. Africa and Sth. America will align more.., and we here must be “ready.”