- Washington and Hanoi launch trade agreement negotiations following tariff delay.
- U.S. suspends 46% tariff on Vietnam’s exports for 90 days.
- Vietnam pledges to cut non-tariff barriers and welcome more U.S. investment.
- Bilateral talks aim to ease tensions amid Vietnam’s $123B trade surplus with the U.S.
U.S.-Vietnam Open Trade Talks as Tariff Tensions Cool
In a move signaling a potential thaw in trade tensions, the United States and Vietnam have agreed to begin formal negotiations toward a trade agreement, just hours after Washington hit pause on the implementation of a 46% tariff rate on Vietnamese exports.
According to a statement from the Vietnamese government, the two countries will work to eliminate as many non-tariff barriers as possible in the coming months. The announcement followed a high-level meeting in Washington between Vietnam’s Deputy Prime Minister Ho Duc Phoc and U.S. Trade Representative Jamieson Greer.
The development comes amid growing scrutiny of Vietnam’s expanding trade surplus with the U.S., which reached $123 billion in 2024, making it America’s largest export market in Southeast Asia.
Vietnam has emerged as a critical manufacturing hub for global tech and apparel firms seeking alternatives to China. The Vietnamese government expressed a commitment to creating a more transparent investment environment and pledged to facilitate U.S. investor access while intensifying efforts to combat trade fraud.
The 90-day tariff delay is seen as a window of opportunity to reset trade relations and potentially strike a deal that prevents a full imposition of duties. While talks are still in the early stages, analysts note the move may be part of a broader U.S. strategy to strengthen economic ties in the Indo-Pacific as geopolitical tensions persist with China.
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