Trump tariffs: Can Vietnam golf its way out of new US import taxes?

Places all over the world are prepared for Donald Trump’s infamous” Liberation Day in America!!”! second year.

The US president’s deadline to impose reciprocal tariffs on trading partners will come just days after he hit foreign carmakers with 25% import taxes.

Vietnam might be especially vulnerable to Trump’s most recent taxes. It has a significant trade deficit with the US, and it has been a result of Chinese companies moving companies away from China to avoid legal action that was announced during his first term in office.

Pham Minh Chinh, Vietnam’s excellent minister, has suggested that he may view things diplomatically while some nations have retaliated against Washington.

He stated in January that he would go to Trump’s Mar-a-Lago house in Florida and play golf” all day long” if it “benefits” his land, and that he would be willing to do so. There was laughter in the room.

Would that be effective?

Trump has recently stated that Vietnam was “almost the worst offender of anyone” and that it was “worse than China.”

Despite having the third-largest trade deficit with the US, after China and Mexico, he has not yet precisely targeted Vietnam with taxes.

Experts claim that Vietnam is doing well in its negotiations with Washington, but its efforts may not be sufficient to prevent most of Trump’s price plans.

Former US business negotiator Stephen Olson said,” The Vietnam PM seems to be taking a page from the book of former Japanese prime minister Shinzo Abe, who built a close personal relationship with Trump over their shared passion of golf.

” I do not, however, anticipate any specific care of Vietnam from a policy perspective. Trump values personal relationships, but in this situation, I believe his desire to appear harsh on business will get out.

Vietnam has stated that it doesn’t intend to “restrict industry” with the US, despite now imposing import taxes it.

The government announced this week that it does help SpaceX, which is owned by close Trump ally Elon Musk, to run its Starlink satellite internet services in the nation on a trial basis.

Some researchers believe that this is one of the steps Vietnam has taken to avoid being hit by US taxes.

In a move intended to “improve business balances,” Hanoi also announced it would reduce tariffs on a number of US imports, including cars and energy.

Less than two weeks later, Vietnamese and US companies signed more than$ 4 billion ( £5.4 billion ) in deals in fields like oil and gas exploration.

Vietnam is being careful to avoid any techniques that would indicate any non-cooperation on business problems, according to Steve Norris of the firm Control Risks.

This technique is in line with its “bamboo diplomacy” foreign policy philosophy. Vietnam aspires to be flexible to international pressures, much like the shoots of plants that influence with the weather.

” The government may respond by putting pressure on Vietnam by the US by offering to promote investments in the hospitality and casino industries, purchase advanced machinery, and… capturing the moment… consider access to Vietnam’s unique earth minerals,” Mr. Norris said.

Worries about China’s impact are a major obstacle to Vietnam.

During Trump’s first word, Vietnam was one of the biggest recipients of US-China conflicts.

He hit China with levies in 2018, which caused some companies to reevaluate where they put their goods. Some people made the decision to relocate to Vietnam for manufacturing.

This has resulted in a rise in exports from Vietnam to the US, with Chinese businesses that have moved their output it to contribute to that number.

Wendy Cutler, a former US business communicator, described Vietnam as a “destination for significant Foreign expense.”

China is Vietnam’s largest provider of merchandise, accounting for more than a third of goods, despite the US still being the country’s largest exporter, according to the most recent official data.

In Vietnam, Taiwanese companies accounted for nearly one in every three new purchases in the country last year.

” These are enormous red flags for Trump,” he said. My hope is that Vietnam may eventually experience severe tariff effects,” Mr. Olson said.

But, tariffs on Vietnam may have an effect on US companies like Nike, a sportswear manufacturer, and Apple and Intel, which have moved their production lines from China to Vietnam.

According to a recent survey conducted by the American Chamber of Commerce in Vietnam, the majority of US companies that anticipate hiring employees if taxes are imposed.

The US president believes that the charges may help the country’s economy because they will encourage more US-based businesses to produce products and collect billions of US dollars in taxes.

However, some economists have warned that it could cause American consumers to see prices go up and hurt global business.

Washington is likewise concerned about so-called” trans-shipments,” which are Chinese products that transit Vietnam while entering different nations.

According to Mr. Norris, US officials have been “quietly stressing to Vietnam that it must lower its trade deficit over time and fight the trans-shipment of Chinese products through the region.”

The Vietnamese government’s leader has expressed confidence that its “handle the connection with the US” is going to be handled.

The South East Asian nation’s recent tariff reductions may make them more appealing to Taiwanese consumers, increasing America’s share of business with the state.

Golf is another option: playing a sport with Trump would have been beneficial to later Chinese president Shinzo Abe.

Abe and Trump form a connection that included numerous golf tournaments over the course of many years. It is argued that the connection aided Abe in obtaining tax exemptions for Japan’s crucial automotive sector at the time.

It’s not clear for the time being whether Vietnam will actually practice sport politics.

The actual exam may be next week, when a new tax law for Trump is set to go into effect.