Latest news with #DezanShira&Associates
Qatar Tribune
03-07-2025
- Business
- Qatar Tribune
Vietnam strikes US tariff deal, but risks Beijing backlash
Agencies Vietnam's newly announced trade deal with the U.S. averts the most punishing of President Donald Trump's 'reciprocal' levies, but analysts warned it could lead to a fresh standoff between Washington and Beijing. The Southeast Asian nation has the third-biggest trade surplus with the U.S. of any country after China and Mexico, and was targeted with one of the highest rates in the U.S. president's 'Liberation Day' tariff blitz on April 2. The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords. The 46% tariff rate, which was due to take effect next week, has been averted, with Vietnam set to face a minimum 20% levy in return for opening its market to U.S. products, including cars. But a 40% tariff will hit goods passing through the country to circumvent steeper trade barriers – a practice called 'transshipping.' Washington has accused Hanoi of relabeling Chinese goods to skirt its tariffs, but raw materials from the world's number two economy are the lifeblood of Vietnam's manufacturing industries. 'From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China,' said Capital Economics. It said the terms on transshipment 'will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over the coming days.' Shares in clothing companies and sports equipment manufacturers – which have a large footprint in Vietnam – rose on news of the deal in New York. But they later declined sharply as details were released. 'This is a much better outcome than a flat 46% tariff, but I wouldn't celebrate just yet,' said Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates. 'Everything now depends on how the U.S. decides to interpret and enforce the idea of transshipment,' he added. 'If the U.S. takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules.' Vietnam's government said in a statement late on Wednesday that under the deal, the country had promised 'preferential market access for U.S. goods, including large-engine cars.' But the statement gave scant detail about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the U.S. in the medium term, endangering more than 2% of its gross domestic product (GDP) as a result of the agreement. Uncertainty over how transshipping will be 'defined or enforced' is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi. 'The looming question now is how China will respond,' she said. 'Beijing has made clear that it would respond to deals that came at the expense of Chinese interests.' And on Thursday, China warned against trade deals that 'hurt third parties.' 'China has always advocated that all parties resolve economic and trade differences through equal dialogue and consultation,' Foreign Ministry spokesperson Mao Ning said. 'At the same time, relevant negotiations and agreements should not target or harm the interests of third parties,' she said. The U.S. deal with Vietnam comes less than a week before Trump's self-imposed July 9 deadline for steeper tariffs on U.S. trade partners to take effect if agreements are not reached. Trump's trade adviser Peter Navarro has called Vietnam a 'colony of China,' saying that one-third of Vietnamese products are, in fact, relabeled Chinese goods. Beijing's commerce ministry said on Thursday it had 'always firmly opposed' U.S. tariffs. 'China's position is consistent,' He Yongqian, spokesperson for China's Ministry of Commerce, told a briefing. 'We are happy to see all parties resolve economic and trade differences with the United States through equal consultations, but we firmly oppose any party reaching a deal at the expense of China's interests,' she said.
DW
03-07-2025
- Business
- DW
Trump reaches trade deal with Vietnam – DW – 07/03/2025
Under the deal, a 20% import tariff will now be placed on Vietnamese exports, far less than the 46% that was due to take effect next week. The United States and its tenth largest trading partner Vietnam managed to reach an agreement late on Wednesday that will now see a 20% tariff placed on many Vietnamese exports. "It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam," Trump said on Truth Social after speaking with Vietnam's top leader, To Lam. The announcement comes just days before a tariff rate of 46% was due to take effect. Vietnam has the third-largest trade surplus with the US after China and Mexico — meaning the US imports more goods and services from them than it exports. Hanoi found itself firmly in the Trump administration's crosshairs when the so-called "Liberation Day" tariffs were announced in early April. The Vietnamese government said late Wednesday that under the deal Hanoi had promised "preferential market access for US goods, including large-engine cars." "This is a much better outcome than a flat 46 percent tariff, but I wouldn't celebrate just yet," the AFP news agency quoted Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates as saying. "Everything now depends on how the US decides to interpret and enforce the idea of transshipment," he added. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Vietnam didn't provide detail about any so-called transshipment arrangement, which involves goods from third countries, passing through Vietnam. Trump's trade adviser Peter Navarro has called Vietnam a "colony of China" and that one-third of Vietnamese products are merely relabelled Chinese goods. Trump said that these types of shipments would face a 40% levy. China on Thursday warned against any trade deals that "hurt third parties." "China has always advocated that all parties resolve economic and trade differences through equal dialogue and consultation," foreign ministry spokeswoman Mao Ning said. "At the same time, relevant negotiations and agreements should not target or harm the interests of third parties," she said.
New Straits Times
03-07-2025
- Business
- New Straits Times
US-Vietnam trade deal sows new China uncertainty
HANOI: Vietnam's trade deal with the United States averts the most punishing of Donald Trump's "reciprocal" levies, but analysts warned it could provoke a fresh standoff between Washington and Beijing. The Southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president's "Liberation Day" tariff blitz on April 2. The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords. The 46 per cent rate due to take effect next week has been averted, with Vietnam set to face a minimum 20 per cent tariff in return for opening its market to US products including cars. But a 40 per cent tariff will hit goods passing through the country to circumvent steeper trade barriers — a practice called "transshipping". Washington has accused Hanoi of relabelling Chinese goods to skirt its tariffs, but raw materials from the world's number two economy are the lifeblood of Vietnam's manufacturing industries. "From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China," said Capital Economics. It said the terms on transshipment "will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over coming days". Shares in clothing companies and sports equipment manufacturers — which have a large footprint in Vietnam — rose on news of the deal in New York. But they later declined sharply as details were released. "This is a much better outcome than a flat 46 per cent tariff, but I wouldn't celebrate just yet," said Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates. "Everything now depends on how the US decides to interpret and enforce the idea of transshipment," he added. "If the US takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules." Vietnam's government said in a statement late on Wednesday that under the deal the country had promised "preferential market access for US goods, including large-engine cars". But the statement gave scant detail about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the United States in the medium term, endangering more than two per cent of its gross domestic product as a result of the agreement. Uncertainty over how transshipping will be "defined or enforced" is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi. "The looming question now is how China will respond," she said. "Beijing has made clear that it would respond to deals that came at the expense of Chinese interests." "The decision to agree to a higher tariff on goods deemed to be 'transshipped' through Vietnam may fall in that category," added Sajedi.
Int'l Business Times
03-07-2025
- Business
- Int'l Business Times
US-Vietnam Trade Deal Sows New China Uncertainty
Vietnam's trade deal with the United States averts the most punishing of Donald Trump's "reciprocal" levies but analysts warned it could provoke a fresh standoff between Washington and Beijing. The Southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president's "Liberation Day" tariff blitz on April 2. The deal announced Wednesday is the first full pact Trump has sealed with an Asian nation, and analysts say it may give a glimpse of the template Washington will use with other countries still scrambling for accords. The 46 percent rate due to take effect next week has been averted, with Vietnam set to face a minimum 20 percent tariff in return for opening its market to US products including cars. But a 40 percent tariff will hit goods passing through the country to circumvent steeper trade barriers -- a practice called "transshipping". Washington has accused Hanoi of relabelling Chinese goods to skirt its tariffs, but raw materials from the world's number two economy are the lifeblood of Vietnam's manufacturing industries. "From a global perspective, perhaps the most interesting point is that this deal again seems in large part to be about China," said Capital Economics. It said the terms on transshipment "will be seen as a provocation in Beijing, particularly if similar conditions are included in any other deals agreed over coming days". Shares in clothing companies and sport equipment manufacturers -- which have a large footprint in Vietnam -- rose on news of the deal in New York. But they later declined sharply as details were released. "This is a much better outcome than a flat 46 percent tariff, but I wouldn't celebrate just yet," said Hanoi-based Dan Martin of Asian business advisory firm Dezan Shira & Associates. "Everything now depends on how the US decides to interpret and enforce the idea of transshipment," he added. "If the US takes a broader view and starts questioning products that use foreign parts, even when value is genuinely added in Vietnam, it could end up affecting a lot of companies that are playing by the rules." Vietnam's government said in a statement late on Wednesday that under the deal the country had promised "preferential market access for US goods, including large-engine cars". But the statement gave scant detail about the transshipment arrangements in the deal, which Trump announced on his Truth Social platform. Bloomberg Economics forecast Vietnam could lose a quarter of its exports to the United States in the medium term, endangering more than two percent of its gross domestic product as a result of the agreement. Uncertainty over how transshipping will be "defined or enforced" is likely to have diplomatic repercussions, said Bloomberg Economics expert Rana Sajedi. "The looming question now is how China will respond," she said. "Beijing has made clear that it would respond to deals that came at the expense of Chinese interests." "The decision to agree to a higher tariff on goods deemed to be 'transshipped' through Vietnam may fall in that category," added Sajedi. "Any retaliatory steps could have an outsized impact on Vietnam's economy."
South China Morning Post
05-05-2025
- Business
- South China Morning Post
Vietnam feels like China 20 years ago – and it's bringing the neighbours closer together
When I found Mao Gao in Vietnam, the Chinese national had just finished one of the country's signature flavoured coffees at a pavement cafe and was getting ready for a smoke. Advertisement Unlike most people I met on a late April visit to Bac Ninh, a flat hazy factory city north of the capital Hanoi, Mao was not in a hurry to push on. He was not, that is to say, anxious about his Vietnam investments getting caught in the crossfire of the US-China trade war that has sent tariffs on both sides soaring to the point where most exports make no business sense. Mao has focused on figuring out Vietnam itself because his plans have nothing to do with the US market. They have everything to do with his home country and the Southeast Asian nation, where he had been stationed for a week. His take reflects a near-consensus among investors: Vietnam feels like China 20 years ago. China was, and Vietnam is, an ascendant low-wage export manufacturing hub facing petty corruption, challenges for foreigners without local intermediaries and pressure to build more factory-friendly infrastructure. Advertisement 'Vietnam shares some of the same fundamentals that powered China's rise as a manufacturing powerhouse 20 years ago,' said Dan Martin, an international business adviser with Dezan Shira & Associates in Hanoi.
