On Thursday, June 5, the Vietnamese Ministry of Industry and Trade stated that Vietnam has submitted documents in response to the U.S. trade demands and has shown “determination and sincerity” to reach consensus on the issue. The U.S. Commerce Secretary criticized Vietnam for transshipping Chinese goods.
According to Reuters, the Vietnamese Ministry of Industry and Trade did not disclose the suggestions made to the U.S.
The Vietnamese Ministry of Industry and Trade stated that at the time of the announcement, Vietnamese Minister of Industry and Trade Nguyen Hong Dien met with U.S. Trade Representative Jamieson Greer in Paris to prepare for the third round of trade agreement negotiations between the two countries. The negotiations are set to take place before the end of next weekend.
A draft letter seen by Reuters to negotiating partners shows that the Trump administration hopes for countries to present their best proposals for trade negotiations by Wednesday, as U.S. officials aim to speed up talks with multiple partners before the final deadline in five weeks.
The statement from the Vietnamese Ministry of Industry and Trade said, “Both ministers agreed to accelerate the negotiation process and make every effort to achieve the best results in the third round of negotiations.”
The Trump administration has imposed tariffs of up to 46% on Vietnamese imports. The implementation of these tariffs is currently suspended for 90 days, with the deadline set for July 9. If the tariffs come into effect, it could severely impact Vietnam’s growth pattern, which relies heavily on exports to the United States (its largest market).
On Wednesday, U.S. Commerce Secretary Howard Lutnick said that pressure on Vietnam will continue as long as it continues to transship a large number of Chinese products to the U.S.
During his testimony before the Senate committee, Lutnick emphasized the significant trade deficit the U.S. has with Vietnam as a defense for the tough stance taken in negotiations. He stated that there would be room for negotiation if Vietnam reduces its imports from China and lessens the trade deficit with the U.S.
“They buy $90 billion from China and then sell to us with a markup,” Lutnick said. “So this (Vietnam) is just a pathway from China to us.”
“We will absolutely look for reciprocity for things that can be reciprocal, but when they import from China and ship to us, they are not reciprocating,” Lutnick added in response to questions from Republican Senator John Kennedy.
Since 2018 when the Trump administration imposed high tariffs on Chinese goods, Vietnam’s exports to the U.S. have almost tripled. Manufacturers have shifted their supply chains from China to Vietnam, leading to a significant increase in Vietnam’s imports from China.