Vietnam offers 0% US import tax; Cambodia cuts to 5%

SATURDAY, APRIL 05, 2025
Vietnam offers 0% US import tax; Cambodia cuts to 5%

Vietnam's leader called Donald Trump, offered to cut import tariffs on US goods to 0% in a bid to ease heavy reciprocal tariffs from the US. Meanwhile, Cambodia's leader sent a letter proposing a 5% import tariff on US products.

US President Donald Trump and Vietnam's leader To Lam agreed on Friday to discuss a deal to remove tariffs, both leaders said after a phone call that Trump said was "very productive", as Hanoi escalated its campaign to dodge duties of 46%.

Days before Trump's announcement on reciprocal tariffs that hit Vietnam hard, the country had already cut several duties as part of a series of concessions to the US, which also included pledges to buy more American goods such as planes and agricultural products.

Vietnam offers 0% US import tax; Cambodia cuts to 5% Vietnam offers 0% US import tax; Cambodia cuts to 5%

"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 US", Trump wrote on his Truth social platform.

"I thanked him on behalf of our Country, and said I look forward to a meeting in the near future," Trump added.

Lam confirmed the call and the pledge to cut tariffs on US goods. "At the same time, (Lam) proposed that the US apply similar tax rates to goods imported from Vietnam," read a report on Vietnam's government portal published shortly after Trump's post.

The two leaders agreed they will continue talking "to soon sign a bilateral agreement" on tariffs, the Vietnamese government said, adding Trump accepted an invitation to visit Vietnam soon.

The Southeast Asian country, which serves as a major manufacturing base for many Western companies, had a trade surplus with Washington, which exceeded $123 billion last year.

Shares of Nike, Adidas and Puma dropped sharply after Vietnam was targeted with 46% tariffs on Wednesday, as the country hosts major manufacturing operations for global shoemakers. But some reversed course following Trump's post on Friday.

US stocks plunged for the second straight day Friday in reaction to President Donald Trump's tariffs,

Without a deal, the 46% US tariff would apply to imports from Vietnam from April 9. The country's benchmark stock index has fallen 8.1% since Trump announced the tariffs two days ago.

Vietnam was already preparing to send a mission to the US next week, which could seal a deal on the purchase of Boeing planes by a Vietnamese airline, according to a document seen by Reuters.

Separately, Cambodia also asked the US government on Friday to postpone the 49% tariff rate on its products.

U.S. reciprocal tariff rates on Cambodia and Vietnam are among the highest.

"Cambodia proposes to negotiate with your honourable administration at the earliest convenient time and wishes to request that your esteemed government consider postponing the above-mentioned tariff implementation," Cambodian Prime Minister Hun Manet said in a letter to Trump, reviewed by Reuters.

Vietnam offers 0% US import tax; Cambodia cuts to 5%

The United States on Wednesday announced reciprocal tariffs on goods imported from dozens of its trade partners, including Cambodia. The US tariffs on goods imported from Cambodia will be increased to 49 %, which will take effect on April 9, 2025.

In a letter sent to U.S. President Donald Trump, Hun Manet requested negotiations, urging Trump to postpone the tariff implementation on Cambodian products.

Hun Manet said the existing practice of Cambodia's maximum tariff rate tops at 35 %.

"In expression of our good faith and in the spirit of strengthening our bilateral trade relations, Cambodia is committed to promoting US-based product imports with an immediate reduction of 19 product categories from our maximum 35 percent tariff-bound rate to a 5 % applied tariff rate," he said.

"In this regard, I have also tasked my Minister of Commerce to correlate with the US Trade Representative," he added.

Hun Manet said Cambodia remains fully committed to engaging in constructive and productive dialogue with the US government to further deepen bilateral trade, so both nations and peoples can enjoy tangible benefits from these significant trade relations.

Reuters

Xinhua
 

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