Vietnam Navigates Trade Tensions Amid U.S.-China Tariff Concerns

Vietnam, seeking to avoid U.S. tariffs, is cracking down on Chinese goods mislabeled as 'Made in Vietnam'. This comes amid trade negotiations with the U.S., aiming to reduce tariffs. Vietnam is also tightening export controls on sensitive goods to China, balancing relations with both major trade partners.

In a strategic move to circumvent punitive U.S. tariffs, Vietnam is cracking down on Chinese goods falsely labeled as 'Made in Vietnam', as reported by sources familiar with the situation and a government document disclosed to Reuters.

The details, revealed exclusively by Reuters, indicate Vietnam's proactive stance following concerns from prominent U.S. officials about Chinese products sent to America under the guise of Vietnamese origin to benefit from lower duties. Despite a temporary suspension of the 46% tariff, Vietnam hopes to negotiate a reduction to 22%-28% in continued trade talks.

Faced with the challenge of maintaining vital trade relations with the U.S. while not antagonizing China, Vietnam's government has initiated stringent customs controls to curb illicit transshipment and ensure the integrity of its export market. These efforts include increased regulation of dual-use goods and supportive measures for tech advancements like Starlink, underlining Vietnam's delicate diplomatic balancing act.

(With inputs from agencies.)