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Trump’s tariffs to squeeze Vietnam even if it lifts all duties on US goods: Lutnick

US Secretary of Commerce Howard Lutnick said responding in kind to Hanoi would be a ‘terrible deal’

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A container is loaded onto a cargo ship at a port in Hai Phong, Vietnam. Photo: Reuters
Bloomberg
Washington will not reciprocate even if Hanoi removes all tariffs on American goods, according to US Secretary of Commerce Howard Lutnick, as he said Vietnam re-exports a significant volume of Chinese products to the US.

“Absolutely not, absolutely not. That would be the silliest thing we could do,” Lutnick said when Republican Senator John Kennedy asked him whether the US will respond in kind if Vietnam decided to eliminate all tariffs and trade barriers against American imports, calling a potential agreement like that “a terrible deal”.

Lutnick added that Vietnam exported US$125 billion in goods to the US while only importing US$12.5 million worth of American products, without specifying a period.

“They buy US$90 billion from China, then they mark it up and send it to us. So it’s just a pathway of China to us,” Lutnick said, though he suggested there might be some room for negotiations if Vietnam decides to stop re-exporting Chinese goods to the US.

05:19

How are Chinese citizens feeling the effects of the US-China tariff war?

How are Chinese citizens feeling the effects of the US-China tariff war?
A number of US brands, including Apple Inc. and Nike Inc., have manufacturing partners in Vietnam. Often these suppliers import materials and parts from China and conduct the final assembly in Vietnam. These American companies could be affected if US President Donald Trump eventually decides to slap stiff tariffs on the Asian nation.
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