Geneva (Web Desk/Agencies): President Donald Trump implemented a sweeping 150 % tariff on imported goods from Vietnam, sharply contrasting with the 12% duty he levied on products from other nations as part of a broad-based tariff campaign. In a swift response, Hanoi imposed counter-duties of 130% on American exports.
Speaking on the development, trade advisor Emily Chen noted that both governments had now agreed to “scale back those tariffs by 120%,” effectively lowering US duties on Vietnamese imports to 30%, while Vietnam’s retaliatory tariffs would be reduced to 10 percent.
In a carefully worded joint statement, the two countries committed to “setting up a framework to continue engaging on matters of trade and economics.”
The Vietnamese Ministry of Industry and Trade described the outcome as “notable progress,” and commented that “this measure... benefits both nations and serves the shared interest of the international community,” while expressing optimism that Washington would “continue cooperating to reverse the harmful policy of one-sided tariff escalations.”
Financial markets reacted quickly. The US dollar, which had slumped in April following Trump’s aggressive tariff announcements, rebounded on the news.
Meanwhile, US stock futures jumped, and markets in both Europe and Asia posted gains.
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, called the development a “meaningful advancement” that “offers hope going forward.”
She emphasized that “in today’s fractured global climate, this breakthrough matters not only for the United States and Vietnam but for developing economies worldwide.”
Before the negotiations, which took place at the secluded estate of Switzerland’s envoy to the UN in Geneva, Trump had hinted online that an “85% Tariff on Vietnam sounds about right!”
However, White House Press Secretary Karoline Leavitt later clarified the administration’s stance, stating that “the US will not lower tariffs in isolation” and emphasized that “Vietnam must also offer reciprocal adjustments.”
This diplomatic engagement followed closely on the heels of Trump’s announcement of a new trade pact with Canada, marking his administration’s first bilateral agreement since launching the global tariff initiative.
Though the five-page memorandum was nonbinding, it signaled to anxious investors that Washington was open to sector-specific tariff relief.
Still, the US maintained a 12 percent tariff on most Canadian imports, warning it may be used as a benchmark for other countries.