Key facts
- The July tariff of 12.5% on Vietnamese goods partly replaced 20% duties struck down by the Supreme Court.
- Two other US probes could result in additional duties on Vietnamese goods as early as November, the report said.
- Vietnam's surplus rose to nearly $190 billion in the first nine months, while China's fell to roughly $130 billion.
- Sun Hong of the South Korean Chamber of Business in Vietnam said the core foundations of US trade policy toward Vietnam would likely remain unchanged.
- Bruno Jaspaert of DEEP C Industrial Zones said foreign and trade policy are largely dictated by the president, not Congress.
- Hanoi has launched campaigns against illegal transshipment and strengthened rules to prevent import of forced-labor goods.
Business representatives in Vietnam said they expect no near-term change in the US trade stance toward Vietnam after midterm elections weakened President Donald Trump, as the two countries seek to seal a trade deal. Vietnam has become the country with the largest goods trade surplus with the United States.
The Trump administration imposed a general 12.5% tariff on Vietnamese goods in July over alleged failures to prevent imports of products made with forced labor, partly replacing 20% duties that had been struck down by the Supreme Court. Two other probes could result in additional duties as early as November, the report said, amid repeated accusations from White House officials that Vietnam serves as a transshipment hub for Chinese exports to the United States.
Sun Hong, honorary chairman of the South Korean Chamber of Business in Vietnam, which represents major Korean corporations including Samsung, said: "The core foundations of the US trade policy toward Vietnam, namely managing trade deficits and cracking down on transshipment from China, will likely remain unchanged." He said no immediate policy changes were expected, though Congress could place greater emphasis on labor and environmental standards.
Bruno Jaspaert, head of DEEP C Industrial Zones, a network of industrial parks in northern Vietnam hosting export-oriented factories operated by multinational companies, said: "Foreign and trade policy are largely dictated by the president and not by the congress, so the problems of today will remain the problems of tomorrow until further notice."
A spokesperson for Vietnam's Foreign Ministry said on November 5 that trade talks continued. Hanoi has launched campaigns against illegal transshipment and other violations flagged by Washington and has strengthened rules to prevent import of forced-labor goods.
US-Vietnam negotiations for a trade deal that could end tariff uncertainty have continued for more than a year. Vietnam has overtaken China and Mexico to become the country with the largest goods trade surplus with the United States, according to US trade data released on November 4, thanks to exports including electronic goods, apparel, footwear and wood products. In the first nine months of the year, Vietnam's record surplus reached nearly $190 billion, about 47% higher than a year earlier. China's surplus fell to roughly $130 billion from nearly $163 billion.