As Trump Pushes for Reciprocal Tariffs, Vietnam Looks To Increase US Farm Product Imports To Ease Trade Risks

Vietnam is trying to ease potential trade tensions with the U.S. by considering an increase in imports of American farm products. This move comes as President Donald Trump pushes for reciprocal tariffs to level the playing field in global trade.

Trump's plan is to impose tariffs on countries that tax U.S. goods, aiming to make trade fairer. But for countries like Vietnam, which depend on selling goods to the U.S., that could create some big challenges.

Vietnam's Plan to Handle Possible Tariffs

"Vietnam is ready to open its market and increase imports of agricultural products from the United States," Vietnamese Trade Minister Nguyen Hong Dien told U.S. Ambassador Marc Knapper last week, according to reports citing Vietnam's government.

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His statement came just after Trump directed his administration to start working on new tariffs. In 2024, Vietnam had a trade surplus with the U.S. worth $123.5 billion, according to the U.S. Bureau of Economic Analysis. That could take a hit if tariffs are raised.

One of Vietnam's key trade advantages lies in its tariff policies. While the U.S. applies an average import duty of just 2%, Vietnam's tariffs on imports average 9.4%, according to the World Trade Organization. This gap makes Vietnam a likely target for any tariff adjustments under Trump's trade strategy.

Farm Products Play a Big Role in U.S.-Vietnam Trade

Agriculture is one of the most important parts of trade between the U.S. and Vietnam. The US Department of Agriculture reported that in 2023, American farmers sent $3.1 billion worth of goods, including soybeans, cotton, and tree nuts, to Vietnam. The hope is that if Vietnam increases its imports of these goods, it could help balance out the trade and lower the chances of tariffs getting higher.

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Vietnam's government is already making moves to stay ahead of potential trade problems. It's set up a group to focus on any disruptions, and it's also talking to the U.S. about buying more American natural gas and defense products like Lockheed Martin's LMT C-130 Hercules planes, according to Reuters.

Trump's Goal of Fairer Trade

Trump's push for reciprocal tariffs is about what he calls leveling the playing field with other countries. "They charge us a tax or tariff and we charge them the exact same," he told reporters in the Oval Office on Feb. 13.

While the goal may be to make U.S. products more competitive around the world, some economists say this could lead to higher costs for American consumers. When tariffs go up, businesses often pass the extra cost on to shoppers, meaning things like groceries and electronics could get more expensive.

What's Next for U.S.-Vietnam Trade?

Howard Lutnick, Trump's commerce secretary nominee, told CNN that he anticipates the Trump administration's tariff investigation will be complete by April 1, with actions to come on April 2.

As trade talks continue, U.S. farmers might find new opportunities to sell to Vietnam. On the flip side, U.S. businesses that rely on Vietnamese imports, especially in tech and manufacturing, will be keeping an eye on what happens next.

For now, Vietnam is taking steps to protect its relationship with the U.S. while navigating the uncertainty of changing trade policies.

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