“It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam”
Source: https://truthsocial.com/@realDonaldTrump/posts/114784170652465525
I’m so confused? Why would Vietnam agree to a one sided “free” trade agreement.
Assuming trump has wildly oversimplified the details to sound better than they are.
Because they get cheaper tariffs on exports to the US, in the knowledge that they don’t want to import much at all from the US, so it makes Trump think he has something when he has nothing.
For Vietnam a bad deal is probably better than no deal. But also, don’t believe anything Trump says.
VinFast is state owned and gets a pile of subsidies on every vehicle sold. There’s also piles of taxes and regulations applied to other vehicles. The US vehicles will be uncompetitive.
He’s got an extensive history of lying about (among so many things) what so-and-so told him in a private meeting, only to be called out and contradicted by that very person the following day.
Throw another one on the pile, most likely.
US goods will be cheaper in Vietnam compared to other countries in the region. US companies will be more likely to invest in Vietnam compared to other countries in the region. If 20% is low relative to where their regional competitors end up it’s not a bad deal. I don’t think a lot of US produced goods compete with local products so its not likely to cause domestic industry much problems.
Quite a few companies in China have been outsourcing to Vietnam to avoid tariffs during the first Trump administration. They didn’t reverse course after the Biden administration increased tariffs further.
Even if Trump didn’t touch the 25% special tariff on Chinese goods, 20% alone justifies doing so.
Until he changes his mind next week.
I suspect they are “caving” a lot like Mexico and Canada “caved” earlier-the request made is already fulfilled.
Some countries are caving to US on war. Some on trade. VN was threatened with 46% tariffs. The 40% transhipment rate is something easily avoided. I doubt VN will import more from US. VN making a deal can still provide best value apparel to US