Vietnam PM says he will address US concerns on non-tariff barriers | Forexlive

Vietnam is an important barometer for the Trump administration right now. It’s been hit with a 10% tariff that will rise to 46% on Wednesday.

The country has offered to cut US tariffs to zero but Peter Navarro today went hard at the country based on trans-shipment from China, IP theft, dumping and a 10% VAT.

“When they go to zero tariffs, it means nothing to us,” he said.

I just don’t see how you can possibly address all those concerns, particularly the VAT.

In any case, it’s not clear what Trump really wants but if he cuts a deal to drop Vietnam tariffs, that would be seen as a big plus. Vietnam certainly appears to want that as it’s been a major beneficiary of companies moving out of China.

But if the aim of the US is to move factories to the US, then just shifting production to Vietnam doesn’t change much.