U.S. Presses Vietnam with Tough Trade Demands Amid Tariff Talks

The United States has delivered a list of “tough and extensive” demands to Vietnam during ongoing trade negotiations aimed at avoiding sweeping tariffs of up to 46% on Vietnamese exports, according to sources familiar with the matter.

The demands, sent as part of an annex to a draft framework agreement by U.S. negotiators, include calls for Vietnam to reduce its reliance on Chinese industrial imports and exercise tighter control over its manufacturing supply chains, two sources told Reuters. These measures are reportedly intended to curb the indirect flow of Chinese goods into the U.S. via Vietnam.

The annex was sent to Hanoi in late May, following the second round of bilateral talks with Washington. While no public comment has been made by either government, insiders describe the U.S. requests as “challenging” and potentially disruptive to Vietnam’s economic structure.

A Delicate Balancing Act

Vietnam’s manufacturing sector — known for producing major global exports such as Apple electronics and Nike footwear — is deeply integrated with China’s industrial supply chain. Meeting Washington’s demands could strain this dependency and complicate Vietnam’s broader foreign policy goals, which aim to balance strong economic ties with both the U.S. and China, despite tensions over South China Sea sovereignty.

Experts suggest that such U.S. pressure may test Hanoi’s commitment to maintaining its dual-alignment strategy. “The U.S. wants real structural shifts, not just symbolic agreements,” one source said.

Trade Tensions and Transshipment Scrutiny

The renewed push by the U.S. comes amid broader efforts to recalibrate trade policy as part of the Trump administration’s intensified “reciprocal tariff” strategy. Vietnam is one of several countries engaged in active negotiations with Washington, alongside the EU, Japan, and India.

Since the U.S.–China trade war began in 2018, Vietnam has seen its exports to the U.S. nearly triple. However, this has been mirrored by a corresponding rise in imports from China, raising concerns in Washington that Vietnam is being used as a transshipment hub for Chinese goods trying to bypass U.S. tariffs.

There have been allegations that some goods exported from Vietnam were falsely labeled “Made in Vietnam” despite minimal domestic value added — allowing Chinese manufacturers to exploit the trade route. In response, Vietnamese authorities have cracked down on illegal transshipment, although recent trade data shows that both U.S.-bound exports and Chinese imports hit record highs as of April.

A Push for Real Commitments

Vietnam has made efforts to respond to U.S. concerns, including plans to purchase American aircraft and energy products, and signing non-binding deals on agricultural imports. However, sources say U.S. negotiators now want firm contracts — not just pledges.

A draft letter circulated by Washington, cited by Reuters, urges all negotiating partners to submit their best trade offers by Wednesday, ahead of the expiration of a 90-day tariff suspension period in early July.

Neither the U.S. Trade Representative nor Vietnam’s Ministry of Industry and Trade has commented publicly on the latest developments.

As the deadline approaches, observers say Vietnam faces a critical decision: whether to align more closely with U.S. trade expectations or risk higher tariffs that could affect billions in export revenue.

Related

Source: Vietnam Insider