In a bid to avoid punitive U.S. tariffs, Vietnam has pledged to crack down on Chinese goods being rerouted through its territory and to implement stricter controls on sensitive exports to China. This move comes in response to concerns raised by senior U.S. officials, including White House trade advisor Peter Navarro, regarding the re-exportation of Chinese products labeled as “Made in Vietnam” to benefit from lower tariffs.
This initiative, detailed in a government document and shared with Reuters, reflects Vietnam's broader strategy to address the implications of escalating U.S.-China trade disputes on its economy.
Vietnam has actively sought to ease U.S. concerns about its growing trade surplus, offering incentives to maintain favorable trade relations. Despite these efforts, the U.S. imposed a 46% tariff under President Donald Trump’s “Liberation Day” tariff package, later suspending it for 90 days to allow bilateral discussions.
The two nations have since initiated trade talks, following a meeting between a Vietnamese deputy prime minister and the U.S. Trade Representative (USTR). Vietnam is reportedly seeking a reduction in tariffs to a range of 22%–28%, according to insiders familiar with the negotiations.
In response to accusations that China is using Vietnam as a conduit to evade U.S. tariffs, Vietnam has committed to combating “trade fraud.” This includes tightening controls over transshipment activities, where goods originating from one country are sent to a second country to re-export under a preferential trade agreement.
During an emergency meeting on April 3, Vietnam’s Government Office instructed trade and customs officials to develop a comprehensive plan to address these concerns. Measures include stricter inspection processes and certifications for goods passing through Vietnamese ports, with a focus on preventing fraudulent labeling of Chinese-origin products as Vietnamese.
As Vietnam strives to protect its trade relationship with the U.S.—its largest export market—it also seeks to avoid antagonizing China, a key source of investment and a critical regional partner. This delicate balance underscores Vietnam’s nuanced approach to navigating complex geopolitical tensions.
Vietnam is also strengthening regulations on the export of dual-use goods, such as semiconductors, that can serve both civilian and military purposes. A draft decree reviewed by Reuters outlines new procedures for declaring and approving the trade of such products. These measures align with requests from major trading partners, including the U.S., to prevent unauthorized technology transfers.
Vietnam has previously engaged with U.S. officials on this issue, reflecting its commitment to supporting Washington’s broader national security objectives, including limiting China’s access to advanced technologies like artificial intelligence and semiconductors.
Vietnam’s efforts to appease U.S. concerns extend to technology collaborations. The government has approved favorable conditions for the deployment of Elon Musk’s Starlink satellite communication services, further signaling its willingness to support U.S.-aligned technological initiatives.
Meanwhile, China’s expanding technological presence is also evident, with Vietnam’s aviation regulator expected to approve Chinese-manufactured COMAC airplanes, potentially paving the way for purchases by Vietnamese airlines. This development coincides with an anticipated visit by Chinese President Xi Jinping.
Vietnam’s actions to address U.S. trade concerns, from tightening transshipment controls to regulating sensitive exports, reflect its proactive stance in managing the ripple effects of U.S.-China trade tensions. At the same time, its balanced diplomatic approach seeks to safeguard vital relationships with both nations, positioning Vietnam as a pivotal player in the evolving dynamics of global trade and geopolitics.
Source: https://www.reuters.com/world/asia-pacific/facing-trump-tariffs-vietnam-eyes-crackdown-some-china-trade-2025-04-11/
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