AmCham urges US to consider tariffs grace period

AmCham urges US to consider tariffs grace period

While AmCham acknowledges the need to address the growing trade deficit between the two nations, we strongly urge the US administration to consider implementing a grace period for the just announced reciprocal tariffs on Vietnam.

Mark Gillin, chairman, AmCham Vietnam

Mark Gillin, chairman, AmCham Vietnam, said that the mission of American Chamber of Commerce in Vietnam - Ho Chi Minh City (Amcham) was to encourage trade and investment between the US and Vietnam, through free and fair trade and economic policy that fosters productivity and predictability.

"The size and immediacy of the 46 per cent reciprocal tariffs announced by the US government on April 2 are wholly inconsistent with these goals. The suddenness of their implementation and the substantial scale of the tariffs has created significant uncertainty and potential disruption for businesses operating in Vietnam," said Gillin.

"Such a period would allow businesses on both sides to adapt to the new regulations, mitigating unnecessary disruption and financial harm."

Currently, the immediate implementation negates the opportunity for businesses to adjust to the new conditions, as commercial decisions have already been made based on prior trade agreements.

AmCham believes that the US and the Vietnamese government are aligned on the fact that the growth in the trade deficit is simply not sustainable.

The US administration has made clear that one of the goals of the reciprocal tariffs is to bring greater reciprocity to the tariff rates each country applies to the other.

Amcham would welcome lower tariffs on US goods entering Vietnam as one way of addressing the trade imbalance, and of significantly reducing the reciprocal duties.

Duties on US goods should at least be equal to those applied to Vietnam’s other trading partners and to those applied to Vietnamese goods entering the US.

The US is the largest export market for Vietnamese goods, yet it is also assessed some of the highest duties of Vietnam’s leading trading partners.

"We are hopeful that both countries can align on reduced duty rates to levels both view as reciprocal so that we can continue the trade relationship that has benefited all participants. Ultimately, AmCham members require certainty and stability to operate effectively. We ask both governments to expedite negotiations aimed at reducing these duties to the lowest possible levels. In this spirit, AmCham stands ready to provide constructive input and facilitate dialogue between the US and Vietnamese governments to improve the trade relationship," he said.

VIR