Vietnam makes all-out push to avert 46% US tariff: Deputy PM

The Vietnamese government is making all efforts to prevent the proposed 46% U.S. tariff on Vietnamese exports from taking effect, said Permanent Deputy Prime Minister Nguyen Hoa Binh.

Responding to legislators’ questions about the tax issue at a parliamentary session on Friday, Binh said Vietnam and the U.S. are engaged in negotiations that have seen "many positive outcomes".

“Both sides have better understanding of each other and are working toward their agreed goals,” the official said, adding that the “outlook is positive.”

According to the Deputy Prime Minister, as part of efforts to prevent the U.S. tariff imposition, Party chief To Lam held a phone call with President Donald Trump in April, two days after Trump's first announcement. The two leaders discussed measures to further facilitate bilateral trade and agreed to maintain discussions to soon sign a bilateral agreement.

Meanwhile, Prime Minister Pham Minh Chinh has continuously directed ministries, agencies, and local authorities to implement related measures, Binh added.

However, amid unpredictable developments, Binh stressed the need for Vietnam to adopt a long-term strategy. This includes proactively restructuring the economy and capitalizing on the benefits of its existing free trade agreements, which offer ample growth potential and reduce dependence on any single market.

“We are actively seeking new markets while supporting businesses to boost exports to these destinations,” he said.

In addition, the domestic production sector must also shift toward deeper processing rather than relying solely on fresh exports, the Deputy Prime Minister stressed, adding that such an approach aims to drive stronger growth.

“By diversifying markets and restructuring the economy, we can better cope with unpredictable shocks. If risks arise, the government stands ready with tax and fee solutions to support businesses,” he noted.

U.S. President Donald Trump on April 2 said that he would levy massive 46% tariffs on imports from Vietnam as part of a new wave of global impositions, effective from April 9. Trump on April 9 dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days.

After the U.S. announced the delay and agreed to start negotiations with Vietnam, Prime Minister Chinh formed a government negotiation team, led by Minister of Industry and Trade Nguyen Hong Dien.

Since early May, the Vietnamese technical delegation has been working with relevant U.S. agencies on bilateral trade pact negotiations.

The first round of bilateral trade pact negotiations took place on May 16 in Jeju, South Korea, immediately after the conclusion of the 31st APEC Ministerial Meeting on Trade (MRT 31). The second round was held from May 19 to 22 and the third took place from June 9-12, both in Washington D.C.

On June 19, Minister Dien had an online round of negotiations with U.S. Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer.

Minister Dien reiterated his request for the U.S. to consider Vietnam’s key concerns, including reciprocal tax policies and market access for several major export categories.

Meanwhile, the U.S side reiterated its commitment and determination to negotiate with Vietnam for an agreement that serves the interests of both countries, the Vietnamese Ministry of Industry and Trade’s news portal reported.