Donald Trump's tariff war: US President says Vietnam seeks deal to cut duties to zero after 46% shocker

Just two days after announcing a sweeping 46% tariff on imports from Vietnam, US President Donald Trump said Hanoi is now signaling it wants to strike a deal to eliminate tariffs altogether. In a Truth Social post on April 4, Trump described a “very productive call” with To Lam, General Secretary of the Communist Party of Vietnam, and claimed the Southeast Asian nation is ready to cut tariffs to zero — if a broader agreement can be reached.

“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the US. I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” Trump wrote. 

On April 2, Trump unveiled plans to impose a 46 percent duty on Vietnamese imports, triggering alarm among US businesses dependent on the country’s low-cost manufacturing. The tariffs, set to take effect April 9, target sectors including apparel, furniture and toys, with analysts warning of potential price hikes for American consumers.

In response, the Vietnamese government has asked Washington for a delay of one to three months, hoping to buy time for negotiations. Reuters reported that Hanoi is also preparing to increase purchases of US goods, including aircraft and liquefied petroleum gas, and will make it easier for American firms to invest in Vietnam.

The financial fallout was immediate. Vietnam’s benchmark stock index has dropped 8.1 percent since Trump’s announcement. Shares of US companies with deep ties to Vietnamese manufacturing — including Nike, American Eagle, Wayfair, Deckers, and Hasbro — also tumbled on April 3.

Vietnam had emerged as a key manufacturing hub for US firms looking to sidestep trade tensions with China. In 2023, nearly one-third of all footwear imports into the US originated from Vietnam, according to the Footwear Distributors and Retailers of America.

(With inputs from agencies)