Vietnam and the United States held their first direct ministerial-level trade negotiations on Friday in Jeju, South Korea, following the APEC Ministerial Meeting. The discussions come ahead of a potentially crippling 46% U.S. tariff on Vietnamese imports, set to take effect in July. The new tariff could seriously affect Vietnam’s export-driven economy, particularly its manufacturing sector, which heavily relies on U.S. demand.
Vietnam’s Ministry of Industry and Trade described the meeting as a commitment by both sides to deepen economic, trade, and investment ties. The in-person dialogue builds on a phone call last month between Vietnamese Trade Minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer, which launched formal negotiations.
According to Vietnam’s statement, Greer expressed agreement with Vietnam’s current proposals and emphasized the U.S. desire for technical negotiations in the coming days to yield constructive outcomes. The U.S. remains Vietnam’s largest export market, and the Southeast Asian country recorded a $123.5 billion trade surplus with the U.S. in 2024, the fourth-highest globally.
To address Washington’s concerns over trade imbalances, Hanoi has introduced measures to reduce its surplus, including lowering tariffs on U.S.-bound products and cracking down on Chinese goods being rerouted through Vietnam to bypass U.S. tariffs.
If implemented, the 46% tariff could derail Vietnam’s growth trajectory, prompting urgency on both sides to reach a resolution. Vietnam aims to preserve its position as a key manufacturing hub and maintain strong foreign investment inflows by ensuring continued access to the U.S. market.
The outcome of these talks could shape the future of U.S.-Vietnam trade relations and significantly influence the global supply chain landscape in Asia.