Vietnam has posed a dilemma for the United States! After the U.S. imposed a 46% tax on Vietnam, Vietnamese leader Thuy Linh made a statement! Following a phone call with Trump, Vietnamese leader Thuy Linh expressed willingness to cancel taxes on American goods to avoid the U.S. imposing new punitive tariffs on imports from Vietnam. Trump said that Thuy Linh told him that if an agreement could be reached with the U.S., Vietnam hopes to reduce tariffs to zero.

On the surface, facing the U.S. tax increase, Vietnam seems unable to withstand it. Therefore, Vietnam hopes to reduce tariffs to zero in exchange for the U.S. canceling the latest tax increase. But obviously, the problem is not that simple. If the tariffs between the U.S. and Vietnam are significantly reduced, this is equivalent to the U.S. and Vietnam reaching a "quasi-free trade" agreement. The result is that Vietnam's competitive products will enter the U.S. market in large quantities, and American products with competitive advantages will also gain more market share.

But if we think deeper about the issue? There is much to consider here. Don't forget China. Vietnam is a member of the RCEP agreement. Not only is the economic and trade relationship between China and Vietnam close, but tariffs are also continuously decreasing. Now the U.S. and China are imposing tariffs on each other. If the U.S. and Vietnam reach an agreement and cancel Vietnam's tariffs, isn't Vietnam perfectly positioned to play the role of a mediator in Sino-U.S. economic and trade relations?

In addition, Vietnam's economy also depends on us. China is Vietnam's largest source of imports. Vietnam's electricity, infrastructure, raw materials, machinery, chemicals, and many other things are very dependent on imports from China. This economic and trade connection cannot be cut off. Vietnam has no leverage to offend the U.S., but it may have even less leverage to offend us. If Vietnam expresses willingness to reduce tariffs to zero and the U.S. accepts, Vietnam is likely to become a transshipment hub for Sino-U.S. economic and trade relations. If the U.S. does not agree, Vietnam may have to choose to stand with us to face the U.S. Undoubtedly, Thuy Linh's proposal has posed a dilemma for the U.S.

Original article: https://www.toutiao.com/article/1828575606210570/

Disclaimer: This article solely represents the author's personal views.