Vietnam proposes canceling all tariffs on the U.S., Indian officials say retaliation is unlikely

According to a letter sent by Vietnam on Saturday, after the U.S. Trump administration announced a 46% tariff on Vietnam, Hanoi proposed canceling all tariffs on imports from the U.S.

Bloomberg saw this proposal put forward in a letter from Vietnamese leaders to President Trump. In the letter, the Vietnamese leader requested that the U.S. not impose any additional tariffs or fees on Vietnamese goods and asked for a delay of at least 45 days for the implementation date of the tariffs announced by Trump on Wednesday, which was set for April 9th.

This letter confirmed Trump's comments on his social media platform "Truth Social" on Friday, following a phone call between the two leaders. Vietnam has increasingly become an important manufacturing and export alternative to China, and was announced by Trump on Wednesday to be subject to one of the highest tariff rates globally.

Kenneth Grasso, director of the White House National Economic Council, claimed on ABC on Sunday that more than 50 countries have contacted the White House to begin trade negotiations. Grasso also denied that Trump's tariff policy is an indirect means of pressuring the Federal Reserve to cut interest rates.

Additionally, according to an Indian government official, India is unlikely to retaliate immediately against the tariffs imposed by Trump, as authorities are focusing on negotiating a bilateral trade agreement with the U.S. to reduce tariffs.

The official said that India is seeking dialogue rather than confrontation, and noted that compared to regional competitors, India has an advantage. The Indian government stated that it plans to work towards reaching a balanced and fair trade agreement with the U.S.

The Indian government official said that all options are open for negotiation, and both goods and services will be discussed. The Indian government is also engaging with exporters regarding expected impacts, and if they reach out, the government will provide assistance.

Trump announced a 26% tariff on Indian goods exported to the U.S. on Wednesday, which hit exporters hard and could exacerbate an economic slowdown already affected by weak consumer confidence. Although escalating global trade tensions remain a threat, negotiated lower rates may bring some relief.

In the meantime, Indonesia's coordinating minister for economic affairs, Airlangga Hartarto, said on Sunday that Indonesia will not retaliate against the 32% trade tariff imposed by the Trump administration on Southeast Asia's largest economy. This is the first response from the Indonesian government to U.S. taxation.

Hartarto stated in a statement that following Trump's announcement of global tariffs on Wednesday, Indonesia will seek mutually beneficial solutions through diplomacy and negotiation.

"This approach is considered in light of the long-term interests of bilateral trade relations, as well as maintaining investment environments and national economic stability," Hartarto said, noting that the government will support industries that may be affected, such as clothing and footwear. Indonesia is one of the six Southeast Asian countries severely impacted by the "reciprocal tariff" policy announced by Trump; the U.S. tariffs on Indonesia will take effect on Wednesday, April 9th.

Source: rfi

Original article: https://www.toutiao.com/article/1828675332272256/

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