Vietnam, US to Begin Trade Talks Following 46% Tariff Suspension

Vietnam and the US agreed to start negotiations on a "reciprocal" trade agreement, with the progress occurring only hours after Donald Trump declared a 90-day pause on increased tariffs.

Deputy Prime Minister Ho Duc Phoc stated that Vietnam aims to preserve stable economic and trade ties with the US “for the benefit of businesses and people of the two countries,” following a meeting with US Trade Representative Jamieson Greer in Washington, as reported on the government website.

Vietnam was one of the initial nations highlighted by Trump for its readiness to discuss the tariffs after a phone conversation between the US president and Communist Party chief To Lam last week. Exporters in Vietnam are currently monitoring the trade negotiations and relying on the government's capability to find a solution to the crisis.

After four days of declines, Vietnam’s stocks surged by the largest margin in over twenty years during Thursday’s morning session. Ruchir Desai, a fund manager at Asia Frontier Capital in Hong Kong, stated that the 90-day halt is “a very big reprieve for Vietnam and this will be a big positive trigger for the stock market.”

Prime Minister Pham Minh Chinh stated that Vietnam is addressing US worries regarding non-tariff barriers and emphasized that the government aims to increase imports of US products, including those related to national security and defense, while hastening the delivery of contracted commercial aircraft.