Vietnam Struggles to Avoid U.S. Trade Tariffs Amid Surging Surplus

Vietnam's trade surplus with the U.S. reached a record high, increasing concerns about potential tariffs under the Trump administration. Despite the surplus, Vietnam's security threat is seen as low, reducing tariff risks. Vietnam seeks compromises, like boosting imports of U.S. products, to mitigate trade tensions.


Devdiscourse News Desk | Updated: 05-02-2025 20:09 IST | Created: 05-02-2025 20:09 IST
Vietnam Struggles to Avoid U.S. Trade Tariffs Amid Surging Surplus
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Vietnam's trade surplus with the United States soared to unprecedented levels last year, newly released U.S. data revealed. This development could potentially complicate Vietnam's efforts to avoid tariffs from the Trump administration. Analysts suggest that Hanoi's commitments, such as increasing imports from the U.S., may help to stave off punitive measures.

The data positions Vietnam just behind China, the European Union, and Mexico in terms of trade imbalance with Washington. However, sweeping tariffs on Chinese imports, newly imposed by the U.S., may not necessarily affect Vietnam due to its lower perceived security threat, according to Sayaka Shiba of BMI research.

To counter this economic challenge, Vietnam is prioritizing negotiations and import strategies, including securing more U.S. natural gas and reducing duties on American agricultural goods. As Prime Minister Pham Minh Chinh advised government officials to brace for potential global trade conflicts, Vietnam's strategy emphasizes compromise and mutual benefits.

(With inputs from agencies.)

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