Vietnam’s prime chief, To Lam, has requested President Trump to delay the imposition of tariffs for at the least 45 days so the 2 sides can avert a transfer that will devastate the Vietnamese economic system and lift costs for American customers.
The 46 % tariff fee the USA has stated it’ll impose on Vietnam is among the many highest any nation faces. The prospect of such a steep tariff has left Vietnam with a way of whiplash and deep apprehension. It additionally presents a pointy distinction to Washington’s latest embrace of Hanoi as an necessary bulwark towards China and a producing vacation spot for a lot of American attire manufacturers.
Mr. Lam’s proposal to President Trump was specified by a letter dated Saturday, based on a duplicate obtained by The New York Instances. Within the letter, Mr. Lam referred to as on Mr. Trump to nominate a U.S. consultant to steer negotiations with Ho Duc Phoc, a Vietnamese deputy prime minister, “with the objective of reaching an settlement as quickly as doable.”
Mr. Lam had been one of many first world leaders to succeed in out to Mr. Trump after the tariffs had been introduced. In a cellphone name, he supplied to scale back tariffs on U.S. imports to zero, and urged Mr. Trump to do the identical, based on the Vietnamese authorities. Vietnam has stated its tariffs on U.S. items is a median of 9.4 %.
Mr. Trump later described the decision as “very productive.”
In his letter, Mr. Lam requested Mr. Trump to fulfill him in individual in Washington on the finish of Could “to collectively come to an settlement on this necessary matter, for the advantage of each our peoples and to contribute to peace, stability and improvement within the area and the world.”
Vietnam’s International Ministry didn’t reply to a request for remark.
Vietnam, which faces punishingly excessive tariffs together with China, Cambodia and Laos, could be the hardest-hit economic system in Asia if the tariffs are imposed as deliberate on Wednesday, based on economists. The USA is Vietnam’s largest export market, accounting for about 30 % of the nation’s complete exports. A 46 % tariff fee would put 5.5 % of Vietnam’s gross home product in danger, based on ING, a Dutch monetary providers firm.
It will additionally damage American customers, as a result of Vietnam is essential within the world manufacturing provide chain. For many years, the nation has constructed its economic system round attracting overseas funding with low cost labor and a younger work power. It’s now a prime producer of manufacturers corresponding to Adidas and Lululemon. Nike makes about 50 % of its footwear in Vietnam.
After Mr. Trump imposed tariffs on China throughout his first time period, Vietnam benefited from firms shifting their manufacturing there.
Inside Hanoi, the latest strikes by the Trump administration have solid doubts on the reliability of the USA, which lately has assiduously courted Vietnam. In 2023, the 2 former enemies cemented a brand new strategic relationship, a transfer seen as a milestone in U.S. overseas coverage. Regardless that Vietnam fought a brutal, decades-long conflict towards the USA, surveys had proven that many Vietnamese welcomed the political and strategic affect of the USA.
The Biden administration considered Vietnam — one of many few Southeast Asian nations that has publicly pushed again towards China’s assertiveness within the South China Sea — as essential to the U.S. effort to counter China’s mounting ambitions within the area.
“Vietnam’s place within the Pacific, its view on China, its willingness to work with America, was its strongest card,” stated Huong Le Thu, the deputy program director for Asia for the Worldwide Disaster Group. “Trump doesn’t see it that means. He doesn’t see allies or strategic values. He simply sees numbers and tariffs, so Vietnam must strive more durable.”
Analysts say Vietnam had a largely constructive opinion of Mr. Trump throughout his first administration, seeing him as a practical businessman who wouldn’t moralize with them over human rights.
Whereas explaining the tariffs, Mr. Trump stated: “Vietnam: nice negotiators, nice folks, they like me. I like them.” He stated “the issue” was that the nation fees the USA “90 %,” a determine apparently reached by basing it on Vietnam’s present commerce surplus with the U.S., value $123.5 billion. (Vietnam disputed that calculation.)
The tariffs come at a precarious time for Mr. Lam, who was named as normal secretary of Vietnam’s ruling Communist Social gathering final yr after the dying of the earlier get together chief, Nguyen Phu Trong. Mr. Lam must safe a powerful financial efficiency as he heads into subsequent yr’s get together congress, the place the nation’s prime leaders might be chosen.
Even earlier than Mr. Trump’s tariff announcement, Vietnam was working to win favor with the brand new administration. It signed provisional offers to import U.S. liquefied pure fuel, reduce some tariffs on American imports, and allowed SpaceX to open an organization to launch its Starlink satellite tv for pc web service in Vietnam. The Trump group is creating a $1.5 billion golf course and lodge challenge in Vietnam’s northern Hung Yen province, Mr. Lam’s residence province.
Alexandra Stevenson contributed reporting.
