{UAH} VIETNAM CUTS TARIFFS IN STRATEGIC BID TO EASE US TENSION

Vietnam cuts tariffs in strategic bid to ease U.S. tensions

Story by Malwina Gadawa

Vietnam has announced a reduction in its tariff rates on various goods, including cars, liquefied gas, and certain agricultural products, in response to the United States' threat of tariff increases.

An announcement published Monday evening on the government information portal indicated that, starting March 31, 2025, new preferential import tariffs will apply to certain goods, including cars, wood, ethanol, frozen chicken legs, pistachios, almonds, fresh apples, strawberries, raisins, and other selected items.

Vietnam has lowered tariff rates

It was also reported that import duties on certain cars are cut in half, and the tariff on liquefied gas decreases from 5% to 2%.

Tariffs on frozen chicken legs will drop from 20% to 15%, on pistachios from 15% to 5%, and on almonds from 10% to 5%.

The tariff rates were reduced following the announcement in March by Vietnam's Prime Minister Pham Minh Chinh that authorities in Hanoi would revise tariff levels to increase the volume of imports from the United States.

Bruno Jaspaert, who leads the industrial zones and the European Chamber of Commerce in Vietnam, told AFP that Vietnam is trying to lessen the effects of the U.S. tariff hike.

He added that rather than waiting to respond, they are taking the initiative, hoping this proactive approach will lead to more favorable treatment compared to others.

Among the most essential car exporters to the U.S. are EU countries, especially Germany, Slovakia, Italy, and Sweden. According to Germany's statistical office Destatis, in 2024, Germany exported 3.4 million new cars worth 135 billion euros, nearly 450,000 of which were exported to the U.S.

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