Vietnam has announced significant tariff reductions on several U.S. imports, including liquefied natural gas (LNG) and automobiles, while also granting approval for SpaceX’s Starlink services, in a move aimed at reducing its trade surplus with Washington and avoiding potential U.S. tariffs.
The Southeast Asian manufacturing hub has been working to balance trade with the U.S. after its surplus exceeded $123 billion last year. The Biden administration has flagged possible tariff measures on major trading partners, prompting Vietnam to take proactive steps.
Under the new plan revealed late Tuesday, Vietnam will lower tariffs on U.S. LNG from 5% to 2%, on automobiles from a range of 45%-64% to 32%, and on ethanol from 10% to 5%, according to Nguyen Quoc Hung, head of the Finance Ministry’s tax policy department. Tariffs on ethane will be eliminated, and duties will be reduced on imports such as chicken thighs, almonds, apples, cherries, and wooden products.
The changes will take effect later this month.
Vietnam has yet to import LNG from the U.S. but is in discussions with American suppliers as it prepares to launch its first two LNG power plants by June.
In a separate decision, Vietnam has approved a trial launch of SpaceX’s Starlink satellite internet service, while maintaining full local ownership of the service. Analysts view this move as another strategic step to strengthen economic ties with the U.S. amid trade policy uncertainties.
Former U.S. President Donald Trump, who has signaled reciprocal tariffs on multiple nations, is expected to make a final decision on tariff adjustments by April 2, though he hinted some countries could receive exemptions.
