Vietnam, US Trade Talks Show Progress Amid Tariff Concerns

HANOI, Vietnam — Vietnam and the United States reported progress in their third round of trade negotiations last week, but key issues remain unresolved, according to Vietnam’s trade ministry on Sunday. The talks took place in Washington, D.C. from June 9 to 12, as a pause on 46% ‘reciprocal’ tariffs on Vietnamese exports approaches expiration in early July, increasing pressure on both governments to find common ground.

Vietnam’s exports to the U.S. surged to $12.2 billion in May, a nearly 42% year-on-year increase and 17% higher than April, as reported by Vietnamese government data. This rise includes exports reaching a post-pandemic high of $13.8 billion. Many of these discussions centered on U.S. measures aimed at reducing Vietnam’s reliance on Chinese imports of industrial materials.

According to Vietnam’s trade ministry, the delegations made significant progress in narrowing gaps based on Vietnam’s responses to U.S. requests. Both sides agreed to hold an online meeting soon between Vietnam’s trade minister, Nguyen Hong Dien, and U.S. Secretary of Commerce Howard Lutnick to tackle unresolved issues.

The last round of discussions included U.S. Trade Representative Jamieson Greer, following a format recommended by U.S. officials. Additionally, Vietnam has begun cracking down on illegal transshipment of goods, particularly from China, in response to U.S. pressures.

Hanoi has also expressed its readiness to lower non-tariff barriers and increase imports of U.S. goods, including planes and agricultural products. However, specific purchase agreements have not yet been finalized.

As the talks continue, the U.S. remains Vietnam’s top export market, with $57 billion in exports from January through May 2025, up from $44 billion during the same period last year. Textiles and footwear are among the primary products sent to American buyers.

Negotiators from both sides have described the discussions as constructive, yet challenging, particularly concerning U.S. requests for Vietnam to reduce reliance on Chinese technology in products exported to the U.S. The upcoming online meetings aim to address these outstanding issues before the looming deadline.