Top U.S. and Vietnamese commerce chambers, representing quite a few companies, have requested the Trump administration to postpone its deliberate 46% tariff on items coming from Vietnam, saying the levy will harm them and bilateral business relations.
The Vietnam Chamber of Commerce and Industry (VCCI) and the American Chamber of Commerce (AmCham) in Hanoi expressed concern to the U.S. Commerce Secretary Howard Lutnick in a letter dated Saturday, saying the tariff, to take impact on Wednesday, was “shockingly high.”
“Lower tariffs for products coming into Vietnam, and for products reaching the American consumer, is what will help U.S. companies, the economy, and consumers,” AmCham and VCCI mentioned in an announcement. “Higher tariffs will not.”
The Southeast Asian nation, a significant regional manufacturing base for a lot of Western corporations, posted a commerce surplus of over $123 billion with the U.S., its largest export vacation spot, final yr.
U.S. President Donald Trump and Vietnamese chief To Lam agreed on Friday to debate a deal to take away tariffs, each mentioned after a telephone name that Trump referred to as “very productive.”
Yet, even earlier than Trump’s Wednesday announcement of sweeping world tariffs, Vietnam lower a number of duties as a part of a collection of concessions to the U.S., together with pledges to purchase extra American items, resembling planes and agricultural merchandise.
“A fast and fair agreement would add certainty for businesses and would help to rectify the trade imbalance between the two countries in a manner that benefits both countries,” AmCham and VCCI mentioned.
Economic progress slows
On the opposite hand, the info on Sunday confirmed that Vietnam’s financial progress slowed within the first quarter of the yr, even earlier than the beginning of tariff-related challenges for the export-reliant financial system.
The nation’s gross home product (GDP) rose healthily by 6.93% within the first three months of the yr from the identical interval final yr, nevertheless it slowed from 7.55% within the quarter ending in December, the National Statistics Office mentioned in a report.
Exports and overseas funding in manufacturing are key drivers of Vietnam’s financial system, however that mannequin could come underneath strain after the current tariff announcement.
Still, Prime Minister Pham Minh Chinh mentioned Trump’s tariffs didn’t change the federal government’s goal of not less than 8% progress this yr.
To hit the goal, progress for the remaining quarters might want to rise by between 8.2% and eight.4%, but when Trump’s tariff on Vietnamese items causes a ten% drop within the nation’s shipments to the U.S., that would lower GDP progress by 0.84 share factors, the statistics workplace estimated.
Most brutal hit could be the garment, footwear, electronics and smartphone sectors, it mentioned.
“Export to the U.S. is one of Vietnam’s main drivers, the tariff may lower foreign investments into Vietnam, especially from American, South Korean and Chinese partners, which may lead to a decrease in jobs and income,” mentioned Nguyen Thi Mai Hanh, a senior official on the statistics workplace.
The U.S. remained Vietnam’s largest importer within the first quarter, and Vietnam’s commerce surplus with the U.S. rose 22.1% from a yr earlier to $27.3 billion.
Source: www.dailysabah.com