Vietnam and Cambodia Propose Tariff Reductions to Strengthen Trade with the U.S.
Vietnam is proposing to cut import tariffs to 0% on U.S. goods to mitigate existing tariffs of 46%. Simultaneously, Cambodia has requested a reduction from 49% to 5% on U.S. imports. Both countries are aiming to enhance trade relations with the United States amid growing tariff concerns.
In a significant diplomatic move, Vietnamese leader To Lam has proposed a reduction of import tariffs on U.S. products to 0%. This offer was made during a phone call with U.S. President Donald Trump, showcasing Vietnam’s intention to ease punitive tariffs recently imposed by the U.S. that average 46%.
During their conversation, Trump described the call as “very productive,” noting that both leaders were interested in negotiating a bilateral agreement regarding tariffs. Vietnam has already begun reducing certain tariff rates prior to this announcement in an effort to strengthen trade relations with the United States, committing to increased imports of American goods, including aircraft and agricultural products.
Following the call, Trump expressed gratitude for Lam’s proposal on his social media platform, conveying optimism about future meetings. Lam confirmed the intent to lower tariffs, while also requesting the U.S. mirror these reductions on Vietnamese imports, as reported by Vietnam’s government portal.
The economic backdrop highlights Vietnam’s trade surplus with the United States, which reached $123 billion last year, solidifying its role as a key manufacturing hub for many global companies. However, the introduction of high tariffs led to a decline in share prices for major brands like Nike and Adidas, with the U.S. markets reacting negatively to the new tariff announcements.
As both nations strategize moving forward, Vietnam has plans to send a delegation to the U.S. next week to potentially finalize a deal on aircraft purchases. Concurrently, Cambodia is also seeking to lower its tariffs on exports to the U.S. from the forthcoming 49% to 5%. This request was articulated by Prime Minister Hun Manet in a letter to Trump, emphasizing Cambodia’s commitment to fostering closer trade ties.
Manet asserted that Cambodia’s highest current tariff rate is 35% and expressed a commitment to reducing tariffs on 19 product categories to enhance bilateral trade relationships. He underscored the importance of constructive dialogue between the two nations to derive mutual benefits from improved trade relations.
In summary, both Vietnam and Cambodia are proactively seeking to reduce tariffs on U.S. imports in an attempt to foster stronger trade relationships with the United States. Vietnam aims to eliminate tariffs entirely, while Cambodia has proposed a substantial reduction. These developments are crucial in the context of recent increases in U.S. tariffs and underscore the importance of diplomatic dialogue in international trade.
Original Source: www.nationthailand.com
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