Vietnam asks Trump to postpone tariffs while negotiating trade

Vietnam is currently facing significant economic challenges due to the high tariffs imposed by the Trump Administration, set to take effect on April 9, 2025. With a staggering 46% tariff rate announced in retaliation for a $123 billion trade surplus in goods with the U.S., the Vietnamese government is actively seeking to negotiate a reduction. Deputy Prime Minister Bui Thanh Son recently met with U.S. Ambassador Marc Knapper in Hanoi, where he conveyed the urgency of postponing the tariffs to allow for further discussions. Vietnamese Communist Party chief To Lam has also reached out to President Trump, requesting a 45-day delay on the tariffs. This request underscores the critical relationship between the U.S. and Vietnam, especially as the latter has experienced a boom in manufacturing and exports, making the U.S. its largest export market. The imposition of such tariffs has led to a drastic decline in market confidence, exemplified by a 7% drop in the Ho Chi Minh stock index following the announcement. The economic repercussions are particularly impactful given Vietnam's recent growth, which has been fueled by diversifying supply chains amidst global trade tensions, particularly between the U.S. and China. Vietnam's leadership emphasizes ongoing cooperation and partnership with the U.S., aiming to mitigate the negative consequences of these tariffs. The outcome of the negotiations will significantly affect both nations, especially as many countries, including China, begin to enlist their own retaliatory measures against the Trump Administration's tariff strategy.