Vietnam's Leader Calls for Delay on 46% Tariff to Protect Economies

In a bid to prevent economic turmoil, Vietnam's top leader reaches out to Washington amid tariff concerns.

Vietnam's Prime Minister To Lam has formally requested U.S. President Donald Trump to postpone the implementation of an unprecedented 46 percent tariff, aimed at Vietnamese goods, for at least 45 days. In his letter, which has been shared with The New York Times, Lam expresses his intent to safeguard both the Vietnamese economy and American consumer interests, anticipating that the tariffs could lead to severe economic fallout in Vietnam and inflated prices in the U.S.

The proposed tariff, one of the highest imposed on any country, has left Vietnam in shock, especially in light of recent warm ties formed with the U.S. Lam's proactive communication began right after the tariffs were announced, as he sought to reduce U.S. tariffs on Vietnamese imports down to zero in exchange, noting Vietnam's average tariff on U.S. imports stands at 9.4 percent.

He has proposed a high-level meeting with Trump in Washington set for late May to expedite negotiations, emphasizing the mutual benefits that could arise from a collaborative approach to trade. Economists suggest that if implemented, these tariffs could jeopardize nearly 5.5 percent of Vietnam's gross domestic product, making it the most negatively impacted economy in Asia, particularly given that the U.S. accounts for around 30 percent of Vietnam's total exports.

While the Vietnamese government has yet to provide further comments, both leaders have previously described their discussions as productive. The outcome of this tariff debate could have significant repercussions for both nations as they navigate economic cooperation amidst ongoing tensions in the Asia-Pacific region.