Vietnam, US Launch High-Level Talks As Tariff Threat Looms

<p>Vietnam and the United States have initiated direct ministerial-level discussions in response to the threat of a substantial US import tariff, signalling a new phase in bilateral trade engagement. The meeting took place on Friday in Jeju, South Korea, on the sidelines of the 31st APEC Ministerial Meeting on Trade.</p>
<p>It marked the first in-person negotiation at this level as the two countries face the possibility of a 46 per cent tariff on Vietnamese goods entering the US market, reported Reuters.</p>
<p>The Vietnamese Ministry of Industry and Trade released a statement on Saturday, highlighting the significance of the dialogue. The ministry described the meeting as a demonstration of both nations’ shared objective to maintain a dependable and constructive economic and investment partnership.</p>
<h3>Ongoing Efforts to Mitigate Trade Imbalance</h3>
<p>These direct negotiations follow an earlier phone conversation last month between Vietnam&rsquo;s trade minister Nguyen Hong Dien and US Trade Representative Jamieson Greer. That call officially kicked off the negotiation process between the two governments.</p>
<p>According to the Vietnamese trade ministry, &ldquo;USTR Greer agreed with Vietnam’s current approach and proposal.&rdquo; The statement added, &ldquo;The United States hopes that with the mutual efforts, the technical-level negotiations in the coming days will yield positive results.&rdquo;</p>
<p>For now, Washington has postponed the implementation of the 46 per cent import tariff until July. However, the uncertainty surrounding the tariff continues to pose a significant threat to Vietnam&rsquo;s export-driven economy. The United States is Vietnam&rsquo;s largest export destination, and the Southeast Asian country also hosts major foreign manufacturers who rely on access to the US market.</p>
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<h3>Vietnam Responds with Policy Adjustments</h3>
<p>As part of its strategy to address the trade imbalance, Hanoi has taken steps to reduce the trade surplus with the US, which stood at $123.5 billion last year&mdash;the fourth-highest among all US trading partners. These measures included lowering tariffs on a wide range of US-bound goods and tightening controls to prevent Chinese products from being rerouted through Vietnam into the American market.</p>
<p>Both countries appear committed to resolving the issue diplomatically. The outcome of these talks will be closely watched, as it could shape the trajectory of US-Vietnam economic relations and have a ripple effect across global supply chains.</p>