Vietnam and U.S. Begin Second Round of Trade Negotiations

The U.S. and Vietnam have begun their second round of trade negotiations in Washington D.C.  The Vietnamese government is working to establish a new trade agreement that will help it evade a possible 46% tariff, a move that could destabilize its export-oriented growth model.  Vietnam, a crucial regional manufacturing hub for many Western firms, reported a trade surplus of over $123 billion with the U.S. in 2024.

Investing.com says to shrink the surplus, the Vietnamese government has taken multiple steps, such as limiting shipments of Chinese goods to the U.S. through its territory and increasing its purchases of American goods.

The U.S. has postponed enforcement of the 46% tariff on Vietnam until July, replacing it with a 10% tariff rate for now.  If imposed, the larger tariff could hamper Vietnam’s growth, considering its significant dependency on exports to the United States, by far its largest market.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com