Facing the threat of US tariffs, Vietnam makes a bold move—slashing import duties and welcoming Starlink. But will it be enough?
Vietnam is racing against time to avoid heavy tariffs from the US. With a massive trade surplus of over $123 billion last year, the Southeast Asian nation is under pressure as former President Donald Trump considers imposing reciprocal tariffs by April 2.
To prevent economic fallout, Vietnam has announced a series of measures—boosting imports from the US and even approving SpaceX’s Starlink internet service.
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What’s Changing? Key Tariff Cuts
Late Tuesday, Vietnam revealed plans to reduce tariffs on several American products:
- Liquefied Natural Gas (LNG): Dropping from 5% to 2%
- Cars: Slashed from 45-64% down to 32%
- Ethanol: Reduced from 10% to 5%
- Other Goods: Chicken thighs, almonds, apples, and wooden products will also see lower duties.
Nguyen Quoc Hung, a top finance official, stated these cuts aim to “improve trade balances” with partners like the US. Interestingly, Vietnam hasn’t yet imported US LNG but is in talks for future power plants.
In another strategic move, Vietnam approved SpaceX’s Starlink satellite internet on a trial basis. Analysts see this as an effort to strengthen ties with the US and avoid tariffs. The government will allow Starlink to operate while retaining full ownership—a rare concession in Vietnam’s tightly controlled telecom sector.
What’s Next?
The new tariffs will take effect by the end of March. Meanwhile, Trump has hinted that some countries might get exemptions. Will Vietnam’s swift actions be enough to dodge the tariff bullet? Only time will tell.
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