Vietnam Slashes Tariffs, Greenlights Starlink to Strengthen U.S. Trade Ties

Vietnam plans to cut tariffs on U.S. goods such as LNG and cars, and approve Starlink services to address a $123 billion trade surplus with the U.S. New tariffs include a cut on LNG from 5% to 2% and on cars from 45%-64% to 32%. SpaceX's Starlink service will begin trial operations.

Vietnam is set to slash tariffs on a range of U.S. exports, including liquefied natural gas (LNG) and automobiles, and has approved Starlink services in a strategic move to ease trade tensions with the United States. The initiative follows a series of measures announced by the Southeast Asian nation aimed at reducing its substantial trade surplus with Washington.

The new tariff structure will see the duty on American LNG reduced from 5% to 2%, while the rate on automobiles will drop dramatically from a previous range of 45%-64% to just 32%. Tariffs on ethanol will see a decrease from 10% to 5%, according to Nguyen Quoc Hung, the head of the Finance Ministry's tax policy department.

In addition, tariffs on ethane will be eliminated, and duties on various other imports, including chicken thighs and fruits, will be cut back. Meanwhile, SpaceX has been given the green light to launch its Starlink satellite internet service in Vietnam on a trial basis, a move analysts believe is part of a broader strategy to prevent impending U.S. tariff impositions.

(With inputs from agencies.)