Kristina Roberts
Vietnam and the United States recently had an important meeting to discuss reducing a heavy tax that the US plans to impose on Vietnamese goods. The tax could be as high as 46%, which would make Vietnamese products much more expensive in the US. This could hurt Vietnam’s economy because the US is its biggest customer for exports.
The meeting happened in Jeju, South Korea, after a big trade conference called the APEC Ministerial Meeting. Vietnam’s trade ministry said both countries want to build a strong and stable trade relationship.
Last month, Vietnamese Trade Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer had a phone call to start the negotiations. After the latest meeting, Vietnam’s trade ministry shared that “USTR Greer agreed with Vietnam’s current approach and proposal.” They also said, “The United States hopes that with the mutual efforts, the technical-level negotiations in the coming days will yield positive results.”
The US has delayed the 46% tax until July. If it happens, it could slow down Vietnam’s economic growth. Vietnam sells a lot of products to the US, and many foreign companies make goods in Vietnam just to export them to America.
Vietnam had a $123.5 billion trade surplus with the US last year, meaning it sold much more to the US than it bought. To reduce this gap, Vietnam has taken steps like lowering its own taxes on US goods and stopping Chinese products from being shipped to the US through Vietnam.
Why This Meeting Matters
The US is Vietnam’s biggest export market, so high taxes would make Vietnamese goods less competitive. Many factories in Vietnam produce clothes, shoes, electronics, and furniture for American buyers. If prices go up because of taxes, US companies might buy from other countries instead.
Vietnam is trying to avoid this by negotiating with the US. Both sides want to find a solution that works for businesses in both countries.
What Happens Next?
The two countries will have more discussions at a technical level to finalize the details. Vietnam hopes the US will either cancel or reduce the planned tax. If not, Vietnamese exporters may struggle, and some factories could even shut down.
For now, businesses in Vietnam are waiting nervously. The next few months will be crucial in deciding whether the 46% tax will happen or if a compromise can be reached.
How the High Tax Could Affect Vietnam’s Economy
If the 46% tax is applied, many Vietnamese businesses that rely on US buyers could face big problems. Factories making textiles, electronics, and furniture might lose orders because their products would become too expensive for American customers. This could lead to job losses and slower economic growth in Vietnam. Some companies might even move their factories to other countries where taxes are lower, which would hurt Vietnam’s manufacturing industry. The government is worried because a drop in exports could mean less money coming into the country, making it harder to invest in infrastructure and public services.
What Vietnam Is Doing to Protect Its Trade
Vietnam is not just talking to the US—it is also making changes to keep trade strong. The country has been cracking down on illegal shipments of Chinese goods disguised as Vietnamese products to avoid US tariffs. It is also signing new trade deals with other countries to reduce its dependence on the US market. At the same time, Vietnam is trying to improve its own industries by investing in better technology and training workers to make higher-quality products. These steps show that Vietnam is serious about keeping its economy strong, even if the US decides to go ahead with the high tax.
