Vietnam, US start trade negotiations over 46% tariff

Minister Dien leads the Vietnamese negotiation team, appointed under a decision by Prime Minister Pham Minh Chinh, while U.S. Trade Representative Greer heads the American delegation.

According to the Department of Foreign Market Development under the ministry, the negotiations are a key step toward defining the principles, scope, and timeline for a future trade agreement that governs bilateral tariffs.

During the conversation, Minister Dien reaffirmed Vietnam’s commitment to strengthening its comprehensive strategic partnership with the U.S., established in September 2023.

He underscored Vietnam’s goal of fostering balanced, stable, and sustainable economic ties, and emphasized that relevant Vietnamese ministries are ready to engage in discussions on U.S. concerns to seek appropriate measures based on harmonized interests and shared risks.

Greer welcomed the move to begin formal negotiations and expressed confidence that both sides could reach an agreement that would support stable and mutually beneficial trade relations.

Both chief negotiators agreed to maintain regular contact at both ministerial and technical levels to expedite the negotiation process on specific issues of mutual concern.

The talks follow U.S. President Donald Trump’s April 9 announcement delaying the implementation of a new global tariff policy – which includes the 46-percent reciprocal tariff on Vietnamese imports – by 90 days. 

The delay gives both governments a window to work toward a resolution before the duties take effect.

The high tariff was introduced as part of a broader U.S. policy targeting countries with large trade surpluses with the U.S., according to a White House statement.

Seeking win-win solutions

On April 22, Prime Minister Chinh chaired a strategy meeting with key ministries to prepare for the talks. 

He underlined the need for thorough preparation to ensure that the negotiations do not disrupt the country’s existing international commitments or adversely affect other markets.

The prime minister also called attention to the opportunity for Vietnam to restructure its export strategies, diversify markets and product offerings, and improve the competitiveness of its goods, especially in high-tech, green, and knowledge-based sectors.

On April 9, Deputy Prime Minister Ho Duc Phoc, serving as a special envoy of Party General Secretary To Lam, met with U.S. Trade Representative Greer in Washington, D.C., to discuss bilateral trade relations.

Both sides agreed to begin work on a reciprocal trade agreement, including tariff arrangements, and tasked technical teams with beginning immediate discussions.

That meeting followed a phone call on April 4 between Party General Secretary Lam and President Trump, held one day after the 46-percent tariff was announced.

During the call, Lam expressed Vietnam’s willingness to reduce tariffs on U.S. goods to zero, increase imports from the U.S., and create more opportunities for American investment in Vietnam.

President Trump later described the conversation as ‘a very productive call’ in a Truth Social post, adding, “I thanked him on behalf of our Country, and said I look forward to a meeting in the near future.”