US will not give Vietnam reprieve on tariffs as it’s pathway for China exports: US commerce chief Lutnick
A number of American brands, including Apple and Nike, have manufacturing partners in Vietnam
[WASHINGTON] Washington will not reciprocate even if Hanoi removes all tariffs on American goods, according to US Secretary of Commerce Howard Lutnick, as he said Vietnam re-exports a significant volume of Chinese products to the US.
“Absolutely not, absolutely not. That would be the silliest thing we could do,” Lutnick said when Republican Senator John Kennedy asked him whether the US will respond in kind if Vietnam decides to eliminate all tariffs and trade barriers against American imports, and calling a potential agreement like that “a terrible deal”.
Lutnick added that Vietnam exported US$125 billion in goods to the US while only importing US$12.5 million in worth of American products, without specifying a period.
“They buy US$90 billion from China, then they mark it up and send it to us. So it’s just a pathway of China to us,” Lutnick said, though he suggested there might be some room for negotiations if Vietnam decides to stop re-exporting Chinese goods to the US.
A number of US brands, including Apple and Nike, have manufacturing partners in Vietnam. Often these suppliers import materials and parts from China and conduct the final assembly in Vietnam. These American companies could be impacted if President Donald Trump eventually decides to slap stiff tariffs on the Asian nation.
Vietnam exported US$136.6 billion to the US in 2024 compared to US$13.1 billion in American imports, according to the Office of the US Trade Representative. That surplus of US$123.5 billion set up the South-east Asian nation for levies of 46 per cent under US President Donald Trump’s reciprocal tariffs, among the highest imposed on US trading partners.
Those import taxes have been temporarily reduced to 10 per cent, with a Jul 9 deadline to strike an agreement with the US.
Washington has sent Hanoi tough requests for tariff talks, including demanding the Asian nation cut its reliance on materials and components from China, Reuters reported earlier this week. BLOOMBERG
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