Vietnam Seeks US Defense Products, Tariff Delay to Boost Trade

24 hours ago Editor

Vietnam is negotiating with the U.S. to purchase more defense products and delay tariffs as it works to address a growing trade imbalance. The country aims to strengthen its trade relations and resolve concerns over issues like intellectual property theft and seafood dumping.

Vietnam is taking steps to strengthen its trade relations with the United States by purchasing more American goods, particularly defense and security products. The move comes as the Southeast Asian nation faces the imposition of tariffs on its exports and seeks to navigate the growing trade gap with the U.S.

Prime Minister Pham Minh Chinh confirmed that Vietnam has requested a 45-day delay for the imposition of a 46% tariff announced by former President Donald Trump. This delay would provide both countries time for further negotiations, aiming for a more balanced and sustainable trade relationship.

At the same time, Vietnam is pressing the U.S. for faster deliveries of commercial aircraft ordered by Vietnamese airlines. Vietnam’s trade surplus with the U.S. in 2023 exceeded $123 billion, highlighting its position as a key manufacturing hub for Western companies.

While the U.S. is concerned about issues like intellectual property theft, seafood dumping, and transshipping from China, Vietnam has vowed to address these concerns. The government plans to review its monetary policies, exchange rates, and ensure the authenticity of its exports.

In response to President Trump’s tariff announcement, Vietnam’s stock market has seen significant losses, with the index falling nearly 14%. However, President Trump and Vietnam’s leader, Nguyen Phu Trong, have expressed mutual interest in resolving the issue through further dialogue, with both parties agreeing to explore ways to remove the tariffs.

U.S. defense exports to Vietnam have been limited since the lifting of the arms embargo in 2016, primarily involving coast guard ships and trainer aircraft. Talks on potential sales of Lockheed Martin C-130 Hercules military transport planes are ongoing.