Vietnam Announces Significant U.S. Tariff Reductions

Vietnam has announced significant tariff reductions on several U.S. imports, including LNG, automobiles, and ethanol, in an effort to mitigate potential U.S. tariffs due to its substantial trade surplus with Washington, which reached $123 billion in 2024. The cuts will see tariffs on American LNG reduced from 5% to 2%, on cars from a range of 45% to 64% to 32%, and on ethanol from 10% to 5%. Vietnam also plans to remove tariffs on American ethane and reduce duties on various agricultural products such as chicken thighs, almonds, and apples. The decree implementing these changes is expected to be finalized and take effect within the month, as Vietnam seeks to avoid reciprocal tariffs set to be announced by the Trump administration on April 2. Despite these efforts, concerns remain about Vietnam's trade practices, especially regarding Chinese firms using Vietnamese facilities to bypass U.S. tariffs on Chinese goods.