Vietnam's Expanding Trade Surplus: A Thorny Issue for U.S. Relations

Vietnam's trade surplus with the U.S. soared in May, intensifying tensions with Washington. Despite efforts to negotiate and reduce tariffs, the surplus increased due to exporters rushing goods to the U.S. before tariffs. Meanwhile, imports from China also rose, creating challenges for Vietnam amid U.S. pressure.

Vietnam's trade surplus with the United States surged in May, intensifying tensions between the two nations over economic imbalances. With exports soaring by 42% compared to a year earlier, Vietnam is facing pressure from Washington to negotiate a deal to avoid hefty tariffs.

The surplus, which reached $12.2 billion in May, has put Vietnam in a challenging position. Exports have increased significantly to beat the impending tariff deadline, placing Vietnam in a spotlight as it attempts to maintain its trade relationship with the United States while managing its growing imports from China.

U.S. officials have cited concerns over Vietnam potentially serving as a conduit for Chinese products to bypass American tariffs. In response, Vietnam is taking steps to address these issues, including cracking down on illegal transshipments and demonstrating willingness to import more American goods, amidst ongoing negotiations.

(With inputs from agencies.)