Vietnam Slashes Tariffs on U.S. Goods to Curb Trade Surplus

Vietnam is cutting tariffs on several U.S. products like LNG, cars, and ethanol to address its $123 billion trade surplus with the U.S. while aiming to avoid U.S. tariffs. This includes reducing LNG tariffs from 5% to 2% and car tariffs to 32%. Vietnam aims for balanced trade while engaging in talks for LNG imports from the U.S.

Vietnam's Finance Ministry is set to reduce tariffs on a range of U.S. imports, including liquefied natural gas (LNG) and automobiles, as a strategic move to address its substantial trade surplus with the U.S., which surpassed $123 billion last year.

The pending tariff cuts will see American LNG levies reduced from 5% to 2% and automobile tariffs lowered to 32%, significantly down from previous rates of 45% to 64%. This effort underscores Vietnam's ongoing commitment to improving trade balances with key partners amid the absence of a formal free-trade agreement between the countries.

Vietnam has yet to initiate LNG imports from the U.S. but is in negotiations for future supplies to power its upcoming LNG plants. Furthermore, the decree enacting these tariff adjustments is anticipated to be ready soon, promising immediate implementation to preempt potential U.S. retaliatory tariffs expected in early April.

(With inputs from agencies.)