Vietnam’s prime chief, To Lam, has requested President Trump to delay the imposition of tariffs for a minimum of 45 days so the 2 sides can avert a transfer that may devastate the Vietnamese financial system and lift costs for American customers.
The 46 p.c tariff fee the US has stated it is going to 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 essential 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, in accordance with a duplicate obtained by The New York Occasions. Within the letter, Mr. Lam known as on Mr. Trump to nominate a U.S. consultant to guide 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 provided to scale back tariffs on U.S. imports to zero, and urged Mr. Trump to do the identical, in accordance with the Vietnamese authorities. Vietnam has stated its tariffs on U.S. items is a mean of 9.4 p.c.
Mr. Trump later described the decision as “very productive.”
In his letter, Mr. Lam requested Mr. Trump to satisfy him in particular person in Washington on the finish of Could “to collectively come to an settlement on this essential matter, for the good thing about each our peoples and to contribute to peace, stability and growth within the area and the world.”
Vietnam’s Overseas 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 financial system in Asia if the tariffs are imposed as deliberate on Wednesday, in accordance with economists. America is Vietnam’s largest export market, accounting for about 30 p.c of the nation’s complete exports. A 46 p.c tariff fee would put 5.5 p.c of Vietnam’s gross home product in danger, in accordance with ING, a Dutch monetary providers firm.
It could 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 financial system round attracting international funding with low-cost labor and a younger work drive. It’s now a prime producer of manufacturers reminiscent of Adidas and Lululemon. Nike makes about 50 p.c of its footwear in Vietnam.
After Mr. Trump imposed tariffs on China throughout his first time period, Vietnam benefited from corporations shifting their manufacturing there.
The velocity with which Vietnam made its provide of zero p.c tariffs mirrored the federal government’s concern that some worldwide producers within the nation may be tempted to relocate to China, stated Ben Bland, director of the Asia-Pacific program at Chatham Home, a assume tank based mostly in London.
“China has extra firepower, extra scale,” Mr. Bland stated. “So the worry is you mainly see issues like electronics manufacturing going to China within the medium time period.”
Inside Hanoi, the latest strikes by the Trump administration have forged doubts on the reliability of the US, 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. international coverage 5 many years after the Vietnam Struggle.
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 vital 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.”
Whereas explaining the tariffs, Mr. Trump stated that Vietnam fees the US “90 p.c,” a determine apparently based mostly 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 must safe a robust financial efficiency as he heads into subsequent yr’s occasion congress, the place the nation’s prime leaders will probably be chosen.
Particularly, the federal government goals to realize 8 p.c development in gross home product as a part of its drive to safe middle-income standing, a World Financial institution designation, stated Karl John of Asia Commerce Consultants, a enterprise consultancy.
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 gasoline, lower 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 resort venture in Mr. Lam’s dwelling province.
Alexandra Stevenson and Matthew Mpoke Bigg contributed reporting.
