Peter Navarro, one of the top trade advisors in Trump’s administration, straightforwardly rejected Vietnam’s zero-tariff deal. The Deputy Prime Minister of Vietnam, Bui Thanh Son, extended a proposal to cut tariffs on the US to zero. This proposal was extended with the objective of postponing the 46% tariff Trump has imposed on Vietnam. The country charges a 90% tariff on imports from the United States of America. If you want to know what Navarro said while rejecting the deal, this article is for you. It brings you everything you need to know about Navarro dismissing Vietnam’s zero-tariff deal.
Navarro Dismisses Vietnam’s Zero-Tariff Deal: The Proposal
The Deputy Prime Minister of Vietnam, Bui Thanh Son, proposed various measures to lower the tariffs imposed on Vietnam this Sunday. According to a report, Vietnam is ready to negotiate to bring the import tariff rate to 0% for US goods. This would have helped increase the procurement of US products that are strong and in demand in the country. The country, at the same time, also proposed to create favorable conditions for US enterprises to do business and invest in Vietnam.
Navarro Dismisses Vietnam’s Zero-Tariff Deal: What Navarro Said While Rejecting The Proposal?
Peter Navarro, the senior trade advisor in Trump’s administration, rejected the deal later that day during his appearance on Fox News. Navarro indicated the United States would not negotiate with Vietnam on the tariffs issue. He mentioned how the trade deficit with Vietnam had actually “gotten out of control.” Navarro also complained that Vietnam is cheating, relabelling Chinese goods as its own. He also stated that the country is employing unfair trade practices as well. Navarro highlighted how the US will still run a trade deficit of about $120 billion in Vietnam even if both countries lower their tariffs as proposed. The country currently runs a $123.5 billion trade deficit with Vietnam because of $13.1 billion in exports in 2024 and $136.6 billion in imports.
Navarro Dismisses Vietnam’s Zero-Tariff Deal: Tariff Impact On Vietnam
Vietnam has successfully established itself as a global manufacturing hub. Several companies that sell their products in the US get them manufactured in Vietnam. This includes famous apparel retailers like Nike as well. The Trump administration has announced that Vietnam is going to have a 46% tariff imposed on it. The VanEck Vietnam ETF (VNM) saw a fall of 10% on Thursday after the announcement of the imposition of tariffs was made. The impact of Trump’s tariff imposition wasn’t limited to Vietnam. The decision also sparked a steep fall in the US markets as well as the global markets on Monday.
Navarro Dismisses Vietnam’s Zero-Tariff Deal: The VAT Issue
Many countries in the world use a value-added tax system, which is quite similar to the US sales tax in some ways. Trump’s administration argued that the tax should count as a trade barrier. However, this argument is not widely accepted. Navarro explained on Monday how they have tried at the World Trade Organization since the 1970s to get VAT-tax relief. But, they were told no every time. He further stated that the value-added tax would be an issue in any negotiations around tariffs with the European Union.
