Vietnam's new US trade deal sparks optimism despite tariff challenges
On the face of it, the deal is highly unbalanced, with US exports to Vietnam enjoying tariff-free market access, while Vietnamese exports in the other direction now face a 20 per cent rate, slightly over twice last year's average rate of 9.4 per cent.
The rationale for the skewed maths, according to supporters of the
Trump administration's 'America-first' trade policy, is that such measures are necessary to balance US-Vietnamese trade. Hanoi currently enjoys a surplus in excess of US$100 billion.
Furthermore, the new rate is vastly lower than the 46 per cent that Trump unveiled in April against Vietnamese goods.
Augustine Ha Ton Vinh, a Vietnamese-American businessman and economic development strategist in Hanoi who formerly worked in the Reagan administration, said that Vietnam could live with the new tariff rate.
'With the 20 per cent rate, it is the level that the Vietnamese economy can bear, but if the US imposes a tax rate of more than 25 per cent, the Vietnamese economy will be in crisis,' said Vinh, who campaigned for Trump last year.
The new tariffs would be difficult but not insurmountable, said Ngo Minh Duc, founder of LCTV Financial Investment Joint Stock Company in Hanoi.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
22 minutes ago
- South China Morning Post
Retail rents in Hong Kong under pressure after vacancy rate hits 4½-year high
Retail rents in Hong Kong are expected to remain under pressure, as the trend of residents travelling to the mainland for leisure has led many businesses to opt for short-term leases, experts have said after the vacancy rate in the city's busiest districts hit a 4½-year high. Advertisement Analysts on Monday also attributed the mounting vacancies to shifting consumer preferences and the difficulty landlords faced in securing high-value tenants once luxury goods shops, such as watch and jewellery stores, had moved out. Property agency Midland IC&I's index earlier showed that about 900 stores were empty in four core districts – Causeway Bay, Central, Tsim Sha Tsui and Mong Kok – reflecting a vacancy rate of 12.1 per cent in the first quarter of this year, the highest level in 4½ years. 'The vacancy rate is relatively high. Additionally, the trend of northbound travel among Hongkongers has shown no signs of slowing down. In these past months, the figures for northbound travel have set new records,' Ryan Ip Man-ki, vice-president of Our Hong Kong Foundation and executive director of the Public Policy Institute, said on a radio show. 'It seems that the vacancy rate and rent of retail spaces, in particular street-level stores, will continue to be under pressure.' Advertisement A slew of established restaurants and shops have shut down in recent months, with some citing high rents amid an economic slowdown as the main reason.
The Standard
41 minutes ago
- The Standard
Hong Kong stocks stalled despite the new US tariff threats on BRICS
The Hang Seng Index ended Monday morning at 23,808, 107 points or 0.45 percent lower. SING TAO
South China Morning Post
2 hours ago
- South China Morning Post
Australia's Albanese to address Darwin Port sale on China visit
When Australian Prime Minister Anthony Albanese arrives in China next week for his second official visit, he will have more than the typical diplomatic niceties to discuss with President Xi Jinping. Advertisement A major task on Albanese's agenda, besides routine topics like trade, will be to explain his country's stance on Chinese investment – in particular, addressing the controversy over the ownership and potential government-influenced sale of the Darwin the Post has learned from sources with knowledge of the matter. This will make for a difficult conversation, analysts said, as Beijing has been on high alert to future divestments following US action over Chinese-owned ports at the Panama Canal. Albanese will arrive in Beijing around July 15, one source said, as a 'friendly gesture' to keep relations on a positive track. Another source said the prime minister will attend the China International Supply Chain Expo , an event held in the country's capital annually since 2023. This year's edition will run from July 16 to July 20. Advertisement Australia's Department of the Prime Minister and Cabinet said Albanese's international engagements will be announced in 'the usual way' in reply to a request for comment.
