HANOI: Vietnam will cut its tariffs on several U.S. products including LNG and cars, the head of the Finance Ministry's tax policy department said, as the country tries to avoid being hit with U.S. tariffs because of its large bilateral trade surplus.
The Southeast Asian industrial hub has taken a series of measures to reduce its trade surplus with Washington, which exceeded $123 billion last year, after U.S. President Donald Trump flagged wide-ranging tariffs on trading partners.
Among the cuts, the tariff on American LNG will be cut to 2% from 5%, on automobiles to 32% from a range of 45% to 64%, and on ethanol to 5% from 10%, Nguyen Quoc Hung said in a statement posted on the ministry's website late on Tuesday.
The tariff cuts are aimed at “improving trade balances with (Vietnam)’s trade partners,“ Hung said, adding that while the U.S. and Vietnam had a Comprehensive Strategic Partnership the countries had not signed a free-trade agreement.
Vietnam has not yet imported LNG from the U.S., but the country has been in talks with U.S. suppliers for its future fleet of LNG power plants, the first two of which are scheduled to start commercial power generation by June this year.
Hung said Vietnam will also remove its tariff on American ethane. He said the decree on the tariff cuts will be ready within this month and will take effect right after that.
Other American imports that will have lower tariffs include chicken thighs, almonds, apples, cherries and wooden products.
Trump is expected to apply reciprocal tariffs on several countries on April 2, although on Monday he
said.
