Vietnam’s high chief, To Lam, has requested President Trump to delay the imposition of tariffs for a minimum of 45 days so the 2 sides can avert a transfer that might devastate the Vietnamese financial system and lift costs for American shoppers.
The 46 % tariff charge the USA has stated it is going to impose on Vietnam is among the many highest any nation faces. The prospect of such a steep tariff has left Vietnam with a way of whiplash and deep apprehension. It additionally presents a pointy distinction to Washington’s current embrace of Hanoi as an essential bulwark towards China and a producing vacation spot for a lot of American attire manufacturers.
President Lam’s proposal to President Trump was specified by a letter dated Saturday, in response to a replica obtained by The New York Occasions. Within the letter, Mr. Lam known as on Mr. Trump to nominate a U.S. consultant to guide negotiations with Ho Duc Phoc, a Vietnamese deputy prime minister, “with the purpose of reaching an settlement as quickly as attainable.”
Mr. Lam had been one of many first world leaders to achieve out to Mr. Trump after the tariffs had been introduced. In a telephone name, he supplied to scale back tariffs on U.S. imports to zero, and urged Mr. Trump to do the identical, in response to the Vietnamese authorities. Vietnam has stated its tariffs on U.S. items is a median of 9.4 %.
Mr. Trump later described the decision as “very productive.”
In his letter, Mr. Lam requested Mr. Trump to fulfill him in individual in Washington on the finish of Could “to collectively come to an settlement on this essential matter, for the good thing about each our peoples and to contribute to peace, stability and improvement within the area and the world.”
Vietnam’s International Ministry didn’t reply to a request for remark.
Vietnam, which faces punishingly excessive tariffs together with China, Cambodia and Laos, could be the hardest-hit financial system in Asia if the tariffs are imposed as deliberate on Wednesday, in response to economists. The USA is Vietnam’s largest export market, accounting for about 30 % of the nation’s complete exports. A 46 % tariff charge would put 5.5 % of Vietnam’s gross home product in danger, according to ING, a Dutch-based financial services company.
It will additionally harm American shoppers, as a result of Vietnam is essential within the international manufacturing provide chain. For many years, the nation has constructed its financial system round attracting overseas funding with low-cost labor and a younger work power. It’s now a high producer of manufacturers similar to Adidas and Lululemon. Nike makes about 50 % of its footwear in Vietnam.
After Mr. Trump imposed tariffs on China throughout his first time period, Vietnam benefited from firms shifting their manufacturing there.
Inside Hanoi, the current strikes by the Trump administration have forged doubts on the reliability of the USA, which in recent times has assiduously courted Vietnam. In 2023, the 2 former enemies cemented a brand new strategic relationship, a transfer seen as a milestone in U.S. overseas coverage. Regardless that Vietnam fought a brutal, decades-long warfare towards the USA, surveys had proven that many Vietnamese welcomed the political and strategic affect of the USA.
The Biden administration seen Vietnam — one of many few Southeast Asian nations that has publicly pushed again towards China’s assertiveness within the South China Sea — as essential to the U.S. effort to counter China’s mounting ambitions within the area.
“Vietnam’s place within the Pacific, its view on China, its willingness to work with America, was its strongest card,” stated Huong Le Thu, the deputy program director for Asia for the Worldwide Disaster Group. “Trump doesn’t see it that means. He doesn’t see allies or strategic values. He simply sees numbers and tariffs, so Vietnam must strive more durable.”
Analysts say Vietnam had a largely constructive opinion of Mr. Trump throughout his first administration, seeing him as a practical businessman who wouldn’t moralize with them over human rights.
Whereas explaining the tariffs, Mr. Trump stated: “Vietnam: nice negotiators, nice individuals, they like me. I like them.” He stated “the issue” was that the nation costs the USA “90 %,” a determine apparently reached by basing it on Vietnam’s present commerce surplus with the U.S., value $123.5 billion. (Vietnam disputed that calculation.)
The tariffs come at a precarious time for Mr. Lam, who was named as common secretary of Vietnam’s ruling Communist Get together final yr after the dying of the earlier occasion chief, Nguyen Phu Trong. Mr. Lam must safe a powerful financial efficiency as he heads into subsequent yr’s occasion congress, the place the nation’s high leaders will likely be chosen.
Even earlier than Mr. Trump’s tariff announcement, Vietnam was working to win favor with the brand new administration. It signed provisional offers to import U.S. liquefied pure gasoline, lower some tariffs on American imports, and allowed SpaceX to open an organization to launch its Starlink satellite tv for pc web service in Vietnam. The Trump group is growing a $1.5 billion golf course and lodge venture in Vietnam’s northern Hung Yen province, Mr. Lam’s house province.
Alexandra Stevenson contributed reporting.
