US Trade Sanctions on Vietnam Temporarily Suspended During High-Level Talks: Vietnam Seeks Delay in US Tariffs Amid Negotiations
The United States has imposed sky-high tariffs on almost every country that exports to the US, including Vietnam, which was hit with a 46% tariff rate.
US trade sanctions are economic penalties imposed on countries or entities that engage in unfair trade practices, human rights abuses, or national security threats.
These sanctions can take various forms, including tariffs, export restrictions, and asset freezes.
The US government uses trade sanctions to promote its foreign policy goals, protect American businesses, and deter illicit activities.
According to the Office of Foreign Assets Control (OFAC), over 25% of global trade is subject to US trade sanctions.
In 2020, the US imposed over $50 billion in tariffs on Chinese goods alone.
Vietnamese Communist Party chief To Lam was one of the first world leaders to speak with President Trump after the announcement.
Vietnam has experienced rapid industrialization in recent years, with the country's GDP growth rate averaging over 6% annually.
The manufacturing sector has driven this growth, with foreign investment pouring into the country to take advantage of its low labor costs and favorable business environment.
Key industries include textiles, electronics, and food processing.
According to the World Bank, Vietnam's industrial production value increased from $60 billion in 2010 to over $200 billion in 2020.
Vietnam’s economy has boomed in recent years due to its diversified manufacturing and export base. The nation has benefited from companies diversifying their supply chains in response to rising tensions between ‘Beijing’ and ‘Washington’. The US is Vietnam’s biggest export market, making any disruption to trade a significant concern for the country.
On Sunday, Deputy Prime Minister Bui Thanh Son met with US Ambassador ‘Marc Knapper’ in Hanoi, requesting that President Trump delay the enforcement of the tariffs while negotiations continue. This request echoes a letter circulating online from Lam to Trump dated April 5, which asks for a postponement of reciprocal tariffs for at least 45 days.
Another deputy prime minister, ‘Ho Duc Phoc’ , has been appointed special envoy to the US and will visit the country from April 6-16. During his trip, he plans to participate in a high-level policy dialogue and ask the US side to prioritize the issue so that an agreement can be reached soon for the benefit of both countries.
Son emphasized that the US decision to impose reciprocal tariffs is ‘inconsistent with the reality of bilateral economic and trade cooperation’ and does not reflect the spirit of the Vietnam-US comprehensive strategic partnership. The US embassy in Hanoi has not commented on Son’s request.
The United States and Vietnam have strengthened their trade ties in recent years, with bilateral trade growing significantly.
In 2020, the US-Vietnam trade value reached $81.1 billion , up from $42.7 billion in 2016.
The US is Vietnam's largest trading partner, while Vietnam is the US's second-largest trading partner in Southeast Asia.
Key exports to the US include textiles, electronics, and seafood, while imports include machinery, equipment, and vehicles.
