Hanoi (AFP) – Vietnam will buy more US goods including security and defence products, the government said, as it seeks a last-minute delay to enormous tariffs imposed by Washington. The Southeast Asian manufacturing powerhouse counted the United States as its biggest export market in the first three months of the year, but its key customer has now hit it with colossal 46 percent duties.
Hanoi has asked US President Donald Trump to delay their implementation by at least 45 days to give time for talks. Prime Minister Pham Minh Chinh said Vietnam would “approach and negotiate with the US side to reach a bilateral agreement, moving towards a sustainable trade balance,” according to a statement published on the government’s news portal late Monday. It would also “continue to buy more US products that are strong and Vietnam has demand for, including products related to security and defence; promote early delivery of aircraft trade contracts,” the statement added.
The tariffs are part of a global trade blitz announced last week by Trump that has sent markets around the world into a tailspin. Regarding Vietnam, it appears that his administration was particularly angered by what it sees as the country’s role in attempts to get around tariffs imposed on China. According to a separate statement on the news portal Tuesday, Deputy Prime Minister Bui Thanh Son has requested the ministry of industry and trade “to review and strictly control the origin of goods, to prevent unfortunate incidents from happening.”
Top leader To Lam has sent a letter to Trump asking for a delay to the tariff. According to a copy seen by AFP, Lam said he had appointed Ho Duc Phoc, another deputy prime minister, to serve as the primary contact with the US side on the issue, “with the aim of reaching an agreement as soon as possible.” He also said he hoped to meet Trump in Washington at the end of May to finalise the matter.
Trump said on Friday he had had “a very productive” call with Lam, who he said wanted to make a deal on tariffs. The measures threaten to “significantly damage” Vietnam’s current growth model, which relies heavily on exports to the United States, according to Sayaka Shiba, senior country risk analyst at research firm BMI. She said in the worst-case scenario, Vietnam could suffer a three percent hit to gross domestic product this year. Vietnam’s main stock exchange, which avoided the freefall that hit global markets on Monday because of a holiday, fell nearly six percent on Tuesday.
© 2024 AFP
