Vietnam to Boost U.S. Imports, Including Defense Equipment, Amid Rising Trade Tensions

Vietnam has pledged to increase its purchases of American goods—including defense and security products—as part of efforts to address its growing trade surplus with the United States and ease tensions following the recent U.S. tariff announcement.

In a statement released late Monday, Prime Minister Pham Minh Chinh said that Vietnam has formally requested a 45-day delay in the imposition of new U.S. tariffs to allow time for negotiations aimed at ensuring balanced and sustainable trade, the Reuters reported.

At a cabinet meeting, the Prime Minister also said that Hanoi is pushing for accelerated deliveries of commercial aircraft ordered from American manufacturers, including Boeing, as part of efforts to narrow the trade gap. In 2023, Vietnam recorded a trade surplus of over $123 billion with the United States, its largest export market.

The U.S. recently announced a new tariff of 46% on certain Vietnamese goods, prompting concerns over the future of bilateral trade. The proposed delay in implementing the tariffs would give both sides time to resolve outstanding issues.

The Vietnamese government emphasized its willingness to cooperate with the U.S. to address Washington’s trade concerns. These include allegations of goods being transshipped from China to evade tariffs, the dumping of seafood and other products, and intellectual property violations.

White House trade adviser Peter Navarro on Monday highlighted Vietnam as a top concern after China, saying it faces multiple cases under investigation by the U.S. Department of Commerce. “They engage in intellectual property theft,” Navarro said in an interview with CNBC.

In response, Prime Minister Chinh said Vietnam will review relevant policies—including its monetary policy, exchange rate mechanisms, and non-tariff barriers—and strengthen efforts to ensure transparent origin labeling on exports.

Following a meeting of its tariff task force on Tuesday, the Vietnamese government announced it is also considering adjustments to the current bilateral trade agreement with the U.S. These updates may include enhanced provisions on taxation and intellectual property protection.

The trade tensions have already impacted investor sentiment. Since the tariff announcement on April 2, Vietnam’s benchmark VN-Index has declined nearly 14%, including a sharp 6.26% drop in early trading on Tuesday to 1,135 points.

Despite current challenges, both sides appear open to negotiation. On Friday, former U.S. President Donald Trump and Vietnamese President To Lam held a phone call described as “very productive,” during which they agreed to discuss a potential resolution to remove the tariffs.

Since the U.S. lifted its arms embargo on Vietnam in 2016, American defense exports have remained limited, primarily consisting of coastguard vessels and training aircraft. However, sources told Reuters that discussions have taken place regarding potential sales of Lockheed Martin C-130 Hercules military transport aircraft to Hanoi.

As Vietnam deepens its strategic and economic ties with the U.S., its approach to navigating trade pressures while modernizing its defense capabilities will be closely watched in the region and beyond.

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Source: Vietnam Insider