Vietnam Successfully Reduces Trump's Tariff to 20%, How Did It Happen?
Vietnam has become one of the countries that successfully negotiated tariffs with the United States (US). Previously, Vietnam was subject to a 46% tariff, but now it has been reduced to just 20%.
Vietnam will receive US products at a zero percent tariff. However, any re-shipments from third countries through Vietnam will be subject to a 40% tariff.
The 40% tariff on transshipment aims to curb the practice of using Vietnam as a backdoor route for goods from other countries, especially China, to enter the United States.
In return, Vietnam agreed to eliminate its own tariffs on US goods, effectively creating a "zero tariff" situation for US products entering Vietnam. This has caused the Vietnamese dong to rise today to 26,125, and its stocks increased by 0.48%
“Vietnam is a manufacturing hub, and as a hub, you take inputs from other countries and create value-added goods in Vietnam, then export them to other countries,” said Researcher Dr. Nguyen Khac Giang.
The agreement undermines the previous push from ASEAN to unite in facing the tariff regime, which makes other members of the bloc more vulnerable to direct pressure from the US.