Vietnam has signaled its readiness to eliminate import tariffs on U.S. goods as it urgently seeks to delay President Donald Trump’s looming 46% levy on its exports, a move that underscores the high stakes of his aggressive tariff strategy.
This development comes as Trump’s sweeping trade policies, announced earlier this week, threaten to upend global markets, with Vietnam facing one of the steepest proposed duties. In response, Hanoi is offering a bold concession—zero tariffs on American imports—to avert economic damage and buy time for negotiations. Meanwhile, other nations, including Japan, Canada, and India, are also stepping up to the negotiating table, eager to mitigate the impact of Trump’s “reciprocal” tariffs, which have already triggered market chaos and retaliatory threats worldwide.
The urgency of Vietnam’s proposal crystallized on April 7, 2025, as global financial markets reeled from Trump’s tariff rollout. Speaking Sunday, Deputy Prime Minister Bui Thanh Son told U.S. Ambassador Marc Knapper that Vietnam is prepared to scrap its tariffs if Trump delays the 46% duty, set to take effect April 9. This follows a call between Trump and Vietnamese leader To Lam, which Trump described as “very productive” on Truth Social, hinting at a potential meeting soon. Vietnam’s economy, heavily reliant on exports to the U.S.—its largest market—faces a $136.6 billion trade surplus at risk, making the 46% levy a dire threat to industries like footwear and apparel. As Hanoi scrambles, other countries are also signaling willingness to negotiate, reshaping the global trade landscape.
Vietnam’s High-Stakes Gamble
Vietnam’s offer to eliminate U.S. import tariffs marks a dramatic shift, reflecting both desperation and pragmatism. The Southeast Asian nation has thrived as a manufacturing hub, particularly since Trump’s first-term trade war with China drove companies like Nike and American Eagle to diversify supply chains. In 2024, U.S. imports from Vietnam surged 19% to $136.6 billion, per the Office of the U.S. Trade Representative, fueling a trade deficit Trump has long decried. His April 2 “Liberation Day” announcement slapped Vietnam with a 46% tariff—among the highest globally—claiming it mirrors Hanoi’s supposed 90% duties on U.S. goods, a figure critics argue oversimplifies complex trade dynamics.
Prime Minister Pham Minh Chinh has called the tariff “not in line” with U.S.-Vietnam ties, urging a delay to foster talks. A high-level delegation, led by Deputy Prime Minister Ho Duc Phoc, is set to visit Washington from April 6-14 to push for a deal, potentially including purchases of Boeing planes and U.S. agricultural goods. Trump’s post about To Lam’s zero-tariff pledge sent Nike shares soaring, given Vietnam’s role in producing 25% of its footwear. Yet, analysts warn that without a delay, the tariff could slash 5.5% off Vietnam’s GDP, per ING estimates, a devastating blow to its export-driven economy.
‘Vietnam Ready’ to Scrap US Import Tariffs as It Seeks Delay of Trump’s 46% Levy
Hanoi’s strategy hinges on reciprocity—offering zero tariffs on U.S. goods to secure a reprieve from Trump’s 46% hammer. During Friday’s call, To Lam proposed a 45-day postponement, a plea echoed in a letter to Trump obtained by The New York Times. “We aim to create an environment conducive to negotiations,” Bui Thanh Son said, per a government release. This charm offensive builds on preemptive concessions, like tariff cuts and market access pledges made before Trump’s announcement. Vietnam’s Foreign Ministry has stayed mum, but the stakes are clear: a trade war with its top export market could unravel decades of economic gains.
Trump, reveling in the pressure, boasted on Truth Social that “every country is calling us,” framing tariffs as leverage to force fairer trade. Vietnam’s move could set a precedent—analyst Kelly Ann Shaw, a former Trump trade adviser, told the Brookings Institution that such negotiations might evolve the policy over time. For now, Hanoi’s business community, including the Vietnam Chamber of Commerce and Industry and the American Chamber of Commerce, has begged for a delay, warning in a letter to Commerce Secretary Howard Lutnick that the “shockingly high” 46% rate threatens bilateral ties and corporate bottom lines.
Japan Joins the Fray
Japan, another key U.S. ally, is also racing to negotiate as it faces a 24% tariff. Prime Minister Shigeru Ishiba sought a call with Trump after the April 2 announcement, which blindsided Tokyo despite prior talks with Commerce Secretary Lutnick. Trade Minister Yoji Muto called the levy “extremely regrettable,” vowing a “bold and speedy” response. Japan’s Nikkei 225 tanked 9% on Monday, April 7, as exporters like Toyota braced for higher U.S. costs. With $137 billion in annual exports to the U.S., Japan can ill afford a trade rift, and Muto hinted at possible concessions, though retaliation remains an option.
The tariff, part of Trump’s formula halving perceived foreign duties (Japan’s alleged 48% rate became 24%), has sparked debate over its fairness. Economists argue it ignores global supply chains and non-tariff barriers, but Trump’s team insists it’s a negotiation starter. Japan’s willingness to talk reflects a pragmatic bid to protect its auto and tech sectors, though any deal’s terms remain unclear as markets await Ishiba’s next move.
Canada and Mexico: North American Tensions
Closer to home, Canada and Mexico are scrambling to shield their economies from Trump’s tariffs—10% universally, plus a 25% auto levy effective April 3. Prime Minister Justin Trudeau has signaled openness to talks, despite initial exemptions under the USMCA trade pact. Canada’s $400 billion in annual U.S. exports, including oil and autos, face uncertainty as Trump pushes for broader concessions. Finance Minister Chrystia Freeland told CNN that Ottawa is “actively engaging” with Washington, though retaliatory measures loom if talks falter.
Mexico, the U.S.’s top goods supplier at $438.9 billion in 2024, is also negotiating. President Claudia Sheinbaum’s administration has downplayed the tariffs’ immediate bite, citing USMCA protections, but Trump’s threat to revisit the deal has spurred action. A Mexican delegation is reportedly preparing to meet U.S. officials, with agriculture and manufacturing deals on the table. Both nations’ early outreach suggests Trump’s pressure is working, though the risk of a North American trade war lingers.
India’s Opportunistic Play
India, slapped with a 26% tariff, sees both risk and reward. Prime Minister Narendra Modi, who agreed with Trump in February to boost bilateral trade to $500 billion by 2030, is pushing for a “mutually beneficial” deal. The Commerce Department is “carefully examining” the levies, lower than Vietnam’s 46% or China’s 34%, and sees a chance to outmaneuver rivals. Exports like textiles and pharmaceuticals—$83 billion to the U.S. in 2024—face higher costs, but Modi’s team is ready to negotiate, possibly offering tariff cuts or increased U.S. market access.
Trump’s “kind” approach—halving India’s alleged 52% rate to 26%—hasn’t softened criticism from analysts like Scott Lincicome, who warn of inflation and retaliation. Yet, India’s proactive stance, buoyed by Trump’s praise of Modi on Truth Social, positions it as a potential winner if talks succeed, especially as competitors like Vietnam scramble.
Global Ripples and Trump’s Resolve
Beyond these frontrunners, nations like South Korea (25% tariff), Thailand (36%), and Israel (17%) are also signaling talks. South Korea’s acting President Han Duck-soo ordered emergency support for affected industries, while Thailand and Israel’s leaders eye Washington visits. Trump’s tariffs, collecting 10% globally since Saturday and higher rates from April 9, have smashed trade norms, per Reuters, prompting a gold rush ($3,148/ounce) and stock sell-offs (S&P 500 futures down 4.3% Sunday).
Trump remains defiant, golfing in Florida Sunday as he dismissed China’s 34% counter-tariffs with, “China has been hit harder than the USA, not even close.” His “economic revolution” rhetoric clashes with warnings from Fed Chair Jerome Powell of inflation and slower growth. As countries negotiate, the world braces for either a new trade order or a devastating standoff.
What’s Next?
Vietnam’s zero-tariff gambit could spark a domino effect, pressuring others to match or exceed its offer. Japan, Canada, Mexico, and India are in early stages, with outcomes hinging on Trump’s unpredictable whims. If successful, these talks could temper the tariffs’ bite; if not, retaliation—like the EU’s planned countermeasures—may escalate the trade war. For now, markets and citizens—from U.S. retirees to Vietnamese factory workers—face a tense wait as Trump’s “medicine” tests global resilience.
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