Vietnam is taking a big step to ease trade tensions with the US. The country announced it will lower tariffs on American goods like liquefied natural gas and cars. This move is seen as a way to balance trade and avoid retaliatory tariffs from President Donald Trump.
The tariffs on US liquefied natural gas will be cut from 5% to 2%. Car tariffs will also be reduced from 45-64% to 32%. Additionally, Vietnam will remove tariffs on US ethanol and lower tariffs on other products like chicken legs, almonds, apples, and cherries.
This decision comes as Vietnam tries to avoid being part of the so-called “Dirty 15” list of countries that the US plans to impose reciprocal tariffs on. The list includes countries with high tariffs on US goods, and Vietnam is one of them.
Vietnam’s trade surplus with the US was $123 billion last year, making it the third-largest surplus after China and Mexico. The US is Vietnam’s largest export market, accounting for nearly 30% of its total exports.
In another development, Vietnam has given the green light to Elon Musk’s SpaceX to test its Starlink satellite internet service in the country. The government will retain full ownership of the service.
Analysts see this move as a strategy to reduce pressure from the US and avoid retaliatory tariffs. It’s a clear sign that the government is trying to ease trade tensions with the US. However, it’s unclear if Trump will be satisfied with this move or if Vietnam will face more trade pressure in the future.
The “Dirty 15” list includes countries like China, the European Union, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa. These countries will face reciprocal tariffs from the US starting April 2, although some may be exempt.
