Vietnam's raw trade deal with the US isn't good news
Mint Editorial Board The US-Vietnam trade deal looks lopsided against the smaller country. This says something about Trump's approach that should make other US trade partners worry. The raw deal that Vietnam seems to have been lumped with has been met with dismay among observers expecting greater tariff symmetry. Gift this article
For Vietnam, its latest trade deal with the US is a bitter-sweet outcome. While the country has managed to escape a 46% tariff that US President Donald Trump had threatened to impose on 'Liberation Day" this April, its US-bound exports will still face a 20% duty.
For Vietnam, its latest trade deal with the US is a bitter-sweet outcome. While the country has managed to escape a 46% tariff that US President Donald Trump had threatened to impose on 'Liberation Day" this April, its US-bound exports will still face a 20% duty.
Also Read: Open-book test: The art of dealing with Trump the deal-maker
If cargo sent from Vietnam happens to be a trans-shipment of merchandise made elsewhere, then that tariff barrier would rise to 40%. This is a device to stop exporters from using its ports to game the US-set matrix of tariffs that vary from one country to another based on a puzzling formula.
Meanwhile, under the deal, US exporters will get 'total access" to Vietnam's markets, as Trump said in a social media post.
Also Read: Trump's tariffs: Turfed out but raring to return
This has been interpreted to mean that Hanoi will impose no import duties on American goods. This is woefully lopsided against Vietnam. But then, given its dependence on exports, a breakdown of trade with the US would probably have been a worse outcome.
The raw deal that Vietnam seems to have been lumped with has been met with dismay among observers expecting greater tariff symmetry. Clearly, no US trade partner can lower its guard while negotiating with it. That goes for India too. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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