President Donald Trump announced on Truth Social that he spoke with Vietnam’s Communist Party General Secretary To Lam, who offered to cut Vietnam’s tariffs on U.S. goods down to “zero” if an agreement is reached. Trump’s post stated, “Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.” Trump posted about Vietnam’s ZERO tariffs deal offer. Source: Truth Social Trump and his wife were invited by General Secretary Lam to visit Vietnam again on the same call. Trump added, “I thanked him on behalf of our Country and said I look forward to a meeting in the near future.” The conversation came amid a dramatic shift in U.S. trade policy, as Trump imposed a 46 percent tariff on all goods imported from Vietnam, a rate that will take effect next week. For Vietnam, one of Trump’s top targets, the new 46 percent tariff is among the highest imposed, affecting a market that absorbed US$142 billion of Vietnamese exports in 2024. Nike’s share price increased after Trump’s post. Source: Google Finance The share price of Nike stock rose following Trump’s post. This increase is linked to the fact that about 25 percent of Nike’s footwear is made in Vietnam. Vietnam was optimistic about dodging the US tariff shock. U.S. direct exports to Vietnam were recorded at US$13.1 billion in 2024, a figure that limits Hanoi’s ability to retaliate with its own tariffs. Therefore, Vietnam is leaning towards diplomacy. Moreover, Hanoi has also tried to avoid trade tariffs before. During a recent visit to Washington by Industry and Trade Minister Nguyen Hong Dien, Vietnam secured US$4.15 billion in deals with U.S. firms, including LNG sourcing agreements with Excelerate Energy and ConocoPhillips, as part of a broader US$90.3 billion trade package for 2025–2030. In a swift post-election move, General Secretary To Lam congratulated Trump, further demonstrating Vietnam’s commitment to diplomatic engagement. Moreover Vietnam also made tariff cuts on various U.S. products announced on March 31, seen as pre-emptive moves to meet Trump’s demands for a more balanced trade relationship. The 46% tariff rate has sparked confusion among Vietnamese leaders, especially given the Trump administration’s claim that it reflects a supposed 90% tariff that Vietnam imposes on U.S. products. However, according to World Trade Organization data, Vietnam’s average applied tariff rate stands at 9.4 percent, with trade-weighted averages even lower at 5.1% as shown in a Reuters report . Even when including a 10% value-added tax, criticized by Trump as a hidden barrier, the computation of a 90% rate lacks clear evidence. Treasury Secretary Scott Bessent noted vaguely that each country’s rate “represents their tariffs,” a comment that has only deepened Hanoi’s frustration and uncertainty over the methodology behind the calculation. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
