Facing a potential 46% U.S. tariff on its exports, Vietnam has announced plans to boost imports of American defense and security products in an effort to address its substantial trade surplus with the United States, which exceeded USD 123 billion in 2024. Prime Minister Pham Minh Chinh revealed these measures during a recent cabinet meeting, emphasizing the country’s commitment to fostering a balanced and sustainable trade relationship with the U.S.
In addition to defense acquisitions, Vietnam is seeking expedited delivery of commercial aircraft previously ordered by its airlines from American manufacturers. The government is also undertaking a comprehensive review of its monetary policies, exchange rates, non-tariff barriers, and export origin labeling practices to align with U.S. trade expectations.
The announcement comes amid heightened scrutiny from U.S. officials regarding Vietnam’s trade practices, including concerns over transshipment of goods from China and intellectual property issues. White House trade adviser Peter Navarro highlighted these issues, citing Vietnam as having a significant number of dumping cases aside from China.
In the meanwhile, both nations are engaging in discussions aimed at resolving trade imbalances and preventing the escalation of tariffs that could impact their economic partnership.
(Source: Reuters)
