Vietnam steps up reciprocal tariff talks with the US

Vietnam steps up reciprocal tariff talks with the US

Vietnam's Ministry of Industry and Trade is pressing ahead with reciprocal tariff negotiations with the United States, while expanding talks for new free trade agreements in the final months of 2025.

At the ministry's Q3 press conference on October 8, officials declared Vietnam's commitment to boosting exports and diversifying markets amid a complex global trade environment. Following the August 1 executive order by US President Donald Trump adjusting reciprocal tariffs for 69 countries and territories, the rate applied to Vietnam was cut from 46 per cent to 20 per cent – ​​a move seen as both symbolic and strategic in the context of the two countries' Comprehensive Strategic Partnership.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said Vietnam had been actively engaging the US side in sustained, technical-level talks to consolidate the tariff arrangement. “The US side has provided positive assessments of the ongoing trade discussions, and the results so far have been encouraging,” he noted.

According to Tan, Vietnamese negotiators are scheduled to visit Washington in October and November to advance discussions and work towards a final framework for the reciprocal trade agreement. The talks, he stressed, are guided by principles of openness, equality, mutual respect, and recognition of each side's level of development. Both sides aim to foster stable, balanced, and mutually beneficial trade and investment ties aligned with the countries' strategic partnership.

Bui Huy Son, director general of the Department of Planning, Finance and Enterprise Management under the MoIT, added that the remainder of 2025 will see accelerated implementation of the Politburo's Resolution No.59-NQ/TW on international integration. The ministry will closely monitor US tariff policy shifts and work proactively with relevant agencies on both sides to address any emerging trade issues and avoid potential adverse measures on Vietnamese exports.

Beyond the US market, the ministry is simultaneously expanding its network of trade deals. Efforts are under way to launch two new free trade agreement (FTA) negotiations – one with the Mercosur bloc and another with the Gulf Cooperation Council, before the end of the year. Talks with Pakistan are expected to begin soon, opening further access to South Asian markets, while the long-awaited Vietnam-EFTA agreement is on track for conclusion in 2025.

Son also highlighted the ministry's focus on supporting domestic enterprises in overcoming export challenges and reducing dependence on the foreign-invested sector. Regular dialogues with industry associations and local authorities are being held to identify constraints and provide timely policy recommendations to the government.

In parallel, the ministry is intensifying trade promotion and market connection programmes to help businesses reach new clients and strengthen trust among existing partners, particularly in the US market. It is also stepping up enforcement of origin rules, inspection, and licensing procedures to curb trade defence circumvention and origin fraud, ensuring a transparent and compliant export environment.

As Vietnam navigates an increasingly protectionist global trade landscape, the dual approach of deepening reciprocal tariff cooperation with the US and broadening its FTA network signals a strategic bid to secure market resilience, sustain export growth, and elevate the country's trade diplomacy.

VIR