Vietnam is set to lower tariffs on several U.S. imports, including liquefied natural gas (LNG) and automobiles, as part of efforts to adjust its trade balance with the United States. The move comes as the U.S. government evaluates potential tariff measures on various trading partners.
According to Nguyen Quoc Hung, head of the Finance Ministry’s tax policy department, the tariff reductions aim to improve trade relations. The U.S. and Vietnam maintain a Comprehensive Strategic Partnership, though they have not signed a free trade agreement.
Among the tariff adjustments, Vietnam will reduce the tariff on American LNG from 5% to 2%, automobiles from a range of 45%-64% to 32%, and ethanol from 10% to 5%. Additionally, tariffs on other U.S. imports, including chicken thighs, almonds, apples, cherries, and wooden products, will also be lowered. Vietnam will also remove tariffs on American ethane.
While Vietnam has not yet imported LNG from the U.S., discussions are ongoing with American suppliers for its upcoming LNG power plants, the first two of which are expected to begin commercial operations by June.
Hung stated that the official decree outlining these tariff adjustments will be finalized within the month and take effect immediately upon issuance.
The tariff changes come as the U.S. government considers implementing reciprocal tariffs on multiple countries, with a decision expected by April 2. U.S. officials have indicated that exemptions may be considered for certain nations.
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