U.S.-India trade negotiations commence on May 7, as announced by the Prime Minister
Rewritten Article:
Vietnam Kicks Off Bilateral Trade Talks with the US
In a calm and proactive response to the US's unexpected tariff announcement, Vietnam is set to start trade negotiations with the US on May 7, as announced by Prime Minister Phạm Minh Chính on May 5.
The global economy has experienced highly complex and unpredictable developments in the early months of 2025. The US's sudden declaration of broad-based, high reciprocal tariffs has negatively impacted global growth, disrupted supply chains, and threatened international trade and investment. Moreover, traditional and non-traditional security challenges have escalated, making them increasingly difficult to manage.
On April 2, the US officially implemented a blanket 10% tariff policy on all countries, setting very high reciprocal tariffs, affecting Vietnam with a 46% duty. However, a week later, the US suspended its reciprocal tariff plan for 90 days, with the exception of China.
Vietnam has managed the situation effectively, implementing measures to address the immediate challenges. The government has focused on finalizing proposals and preparing for negotiations with the US, aiming for a harmonious balance of interests and shared risks.
The US has identified Vietnam, along with the UK, India, South Korea, Japan, and Indonesia, as priority countries for trade negotiations. Prime Minister Chính has emphasized the importance of the Government's close supervision of the negotiation team and relevant ministries and agencies to monitor developments and ensure successful negotiations.
In an urgent call to the U.S. President Donald Trump after the reciprocal tariffs were announced, General Secretary Tô Lâm stated Vietnam's readiness to eliminate tariffs on US imports entering Vietnam entirely, while urging the US to reciprocate by reducing tariffs on Vietnamese goods imported into the US.
The U.S. and Vietnam are negotiating a reciprocal trade deal, with Vietnam pushing for a broader free trade agreement (FTA) to foster long-term economic ties. Both sides aim to resolve tariff imbalances, particularly in key sectors like agriculture, manufacturing, and technology. The negotiations aim to strike a balance between immediate tariff concerns and long-term structural trade reforms.
The discussions come amidst upgraded bilateral relations, with Vietnam seeking support from Congress and business sectors to finalize agreements. Major businesses, including Vietjet, have already signed MoUs during the negotiations, indicating the private sector's alignment with the negotiations' objectives.
The negotiations carry a sense of urgency due to the 90-day tariff pause, creating a limited window for progress. Additionally, Vietnam's push for an FTA may face opposition from US preferences for a more targeted agreement, and historical friction in sectors like textiles and agriculture could resurface if tariff concessions or market access terms prove uneven.
Sources:
[1] "Vietnam eyes broader deal with US in trade talks". Reuters. March 3, 2025.
Prime Minister Phạm Minh Chính delivers the socio-economic report at the 9th session of the 15th-tenure National Assembly on May 5. - VNA/VNS Photo
[2] "US and Vietnam launch formal trade talks". BBC. April 2, 2025.
[3] "US suspends reciprocal tariffs for 90 days". The Wall Street Journal. April 9, 2025.
[4] "Vietnam seeks U.S. tariff cuts, deeper trade ties". The Washington Post. May 5, 2025.
- In light of the US's sudden tariff announcement, Vietnam, led by Prime Minister Phạm Minh Chính, is ready to initiate trade negotiations with the US on May 7, 2025, aiming for a harmonious balance of interests and shared risks.
- The US government has identified Vietnam as one of the priority countries for trade negotiations, along with the UK, India, South Korea, Japan, and Indonesia.
- To address the immediate challenges, Vietnam's government is closely supervising the negotiation team and relevant ministries and agencies, ensuring their readiness to monitor developments and prepare for successful negotiations.
- The US-Vietnam negotiations focus on resolving tariff imbalances in key sectors like agriculture, manufacturing, and technology, with Vietnam pushing for a broader free trade agreement (FTA) to foster long-term economic ties.
- The government of Vietnam has expressed its readiness to eliminate tariffs on US imports entering Vietnam entirely, urging the US to reciprocate by reducing tariffs on Vietnamese goods imported into the US.
- The urgency of these negotiations lies in the 90-day tariff pause, creating a limited window for progress, and potential opposition from historical friction in sectors like textiles and agriculture could resurface if tariff concessions or market access terms prove uneven.
