Vietnam has been pursuing a positive proactive trade deal with the United States. To deepen this partnership, the country is currently negotiating a bilateral trade agreement. This move comes in the wake of a 90-day pause in reciprocal tariffs imposed by the Trump administration, during which Vietnam aims to negotiate favorable terms.
Just last week, as part of a high-level Vietnamese delegation, Vietnam’s Deputy Prime Minister negotiated with U.S. Treasury Secretary Scott Bessent to discuss moving forward. Just last week, U.S. President Donald Trump had an unprecedented phone call with Communist Party Chief To Lam. We hope that this discussion makes clear just how important their continued trade talk is.
Vietnam was one of the first countries singled out by Trump, presumably for its eagerness to negotiate in exchange for a reversal of tariffs. The new deliberations squarely respond to complaints raised by the Trump administration. Mostly, they fear that Chinese products are being transshipped through Vietnam to the U.S. to avoid tariffs. Vietnam has long been an unapologetic advocate for a bilateral trade agreement. At last, the United States is following through on the earlier proposal.
In the process of the fiery discussions, both sides agreed to settle down and get negotiations started on tariff specifics. According to the Vietnamese government’s official website, tariffs are central. They’re even seen as the “most significant pillar” of a future bilateral trade deal. Vietnam now has a daunting 46 percent tariff. This rate is one of the most extreme ones stiffed by the Trump administration, passed down just a few days after that Deputy Prime Minister’s whiplash-inducing visit to Washington.
Separate from tariff negotiations, Vietnam recently rolled out tougher measures meant to crack down on the origin fraud scam. This new initiative came about precisely because of fake products disguised as Vietnamese exports.
“The move is not just to support the government’s negotiating team in the US but also showing that Vietnam’s serious with its commitment to tackling the Chinese transshipment issue.” – Le Dang Doanh
Bessent emphasized the importance of achieving “quick, demonstrable progress to resolve outstanding issues” during his discussions with the Deputy Prime Minister. This sentiment belies the urgency and importance each country is giving to resolving outstanding trade issues.
The continuing talks represent an important path forward despite deep, complicated negotiations over direction and contention between U.S., Canadian and Mexican trade policies. That’s why it’s encouraging to see Vietnam proceeding with its proposed TPRs and TPR negotiations. The country is committed to deepening its integration into the international trade system while addressing important concerns of origin and compliance.
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