Vietnam urges Trump to delay tariffs for 45 days amid economic concerns

Vietnam’s top leader, To Lam, has formally requested US President Donald Trump to delay the imposition of tariffs for at least 45 days. 

Lam’s plea comes in response to the 46 per cent tariff rate that the US plans to impose on Vietnam, which would severely impact the Southeast Asian nation’s economy and increase prices for American consumers, Caliber.Az reports per foreign media. 

The tariff rate is among the highest any country faces and has raised concerns within Vietnam, particularly since it contrasts with Washington's recent embrace of Hanoi as a key counterbalance to China and a manufacturing hub for US apparel brands.

In a letter, Lam urged Trump to designate a US representative to lead direct negotiations with Vietnamese Deputy Prime Minister Ho Duc Phoc, with the aim of reaching a mutually beneficial agreement as soon as possible. The letter highlights Vietnam's intention to negotiate rather than retaliate, focusing on diplomacy as a solution.

Lam had already reached out to Trump shortly after the tariff announcement, offering to reduce Vietnam’s tariffs on US imports to zero, and urged Trump to reciprocate. The Vietnamese government reported that Vietnam’s average tariff on US goods is currently 9.4 per cent. In a phone call between the two leaders, Trump described the discussion as “very productive.”

Furthermore, Lam extended an invitation to Trump for an in-person meeting in Washington at the end of May, with hopes of reaching a resolution that would benefit both nations and contribute to regional and global stability.

Vietnam’s Foreign Ministry has not yet responded to a request for comment regarding the letter. However, economists predict that Vietnam—along with China, Cambodia, and Laos—would bear the brunt of the tariff impacts. The US is Vietnam’s largest export market, representing about 30 per cent of its total exports. A 46 per cent tariff would risk up to 5.5 per cent of Vietnam’s GDP, according to financial services firm ING.

The proposed tariffs also threaten American consumers, as Vietnam plays a vital role in the global manufacturing supply chain. The country has built its economy around foreign investment, providing affordable labor and a youthful workforce. Vietnam is a major manufacturer for brands like Adidas, Lululemon, and Nike, which produces around 50 per cent of its footwear in Vietnam.

After Trump imposed tariffs on China during his first term, Vietnam saw an increase in manufacturing as companies shifted production to the country. The potential new tariffs on Vietnam may now reverse that trend, affecting both the US and Vietnamese economies.

By Naila Huseynova