US, Vietnam agree to boost trade, tariffs on some Vietnamese goods may be removed
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The US will maintain its reciprocal tariffs at 20 per cent on Vietnamese goods, but will identify products where the levy can be reduced to zero.
PHOTO: REUTERS
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HANOI/KUALA LUMPUR – The United States and Vietnam will finalise a trade agreement in the coming weeks that will see reciprocal tariffs set at 0 per cent to 20 per cent, the White House said on Oct 26.
The two countries have agreed to a framework for the agreement on “reciprocal, fair and balanced” trade between the two nations, the countries said in a joint statement released by the White House.
US President Donald Trump in July announced that the United States would place a 20 per cent tariff on many Vietnamese products
In the new deal, the US will maintain its reciprocal tariffs at 20 per cent on Vietnamese goods, but will identify products where the levy can be reduced to zero.
The agreement “will provide both countries’ exporters unprecedented access to each other’s markets”, the statement said.
In 2024, Vietnam had a trade surplus of US$123 billion (S$160 billion) with the US, its largest export market.
“In the coming weeks, the United States and Vietnam will work to finalise the Agreement on Reciprocal, Fair, and Balanced Trade, prepare the agreement for signature, and undertake domestic formalities in advance of the agreement entering into force,” the statement said.
The US and Vietnam will also work to address both countries’ interests when it comes to non-tariff barriers, it said.
Vietnam has agreed to accept vehicles built to US motor vehicle safety and emissions standards, address the issue of import licences for US medical devices, and streamline regulatory requirements and approvals for US pharmaceutical products.
It will also fully implement Vietnam’s obligations under certain international intellectual property treaties, it added.
“The United States and Vietnam are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls,” it said. REUTERS
