11-Apr-2025 02:42 PM
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Hanoi, Apr 11 (Reporter) Vietnam has decided to crack down on Chinese goods being shipped to the United States via its territory and will tighten controls on sensitive exports to China, Hanoi has said after the US raised concerns about Chinese goods being sent to America with “made-in-Vietnam” labels that draw lower duties.
According to the South China Morning Post, senior US officials, including the influential White House trade advisor Peter Navarro, raised concerns about the issue with Vietnam.
Hanoi is facing an exorbitant 46% increase in tariffs, as per President Donald Trump’s worldwide ‘reciprocal tariffs’ policy, making it the country with second highest tariff rate, after China’s rate was increased to 145% from its initial 34% increase after Beijing’s retaliatory 84% increase on US imports.
While the US has suspended its tariffs for 90 days worldwide with China being the only exception, Hanoi and Washington have agreed to start talks after Vietnam Deputy Prime Minister Ho Duc Phoc met the US Trade Representative Jamieson Greer on Wednesday.
Export-reliant Vietnam is hoping to get the rate reduced to a range between 22% - 28%, if not lower, according to three people with knowledge of the matter.
An anonymous official familiar with the matter said that based on the measures offered by Hanoi, American officials had signalled that a reduction of rates within this range was likely.
In announcing the start of trade talks with the US on Thursday, Vietnam’s government said on its official portal it would crack down on “trade fraud”. It did not provide specifics. Since Trump’s first term, many multinational firms have implemented a “China plus one” policy of setting up factories in Vietnam to reduce exposure to Beijing.
The Southeast Asian nation is currently in a tight spot as it tries to preserve trade with the US, which is its largest export market and a security partner. At the same time, Hanoi does not want to antagonise China, which is a top source of investment as well as a close neighbour with which it has clashed over boundaries in the South China Sea...////...