[By Guancha Net, Qi Qian] In recent years, Chinese enterprises have gone abroad, bringing huge job opportunities to Vietnam. However, after U.S. President Trump initiated the trade war and disrupted supply chains, Vietnam is facing a so-called "reciprocal tariff" of up to 46%.

According to a May 24 report by The New York Times, Vietnamese officials are urgently trying to reach an agreement before the 90-day suspension period for the "reciprocal tariff" ends in early July. Earlier this week, Vietnamese representatives held their second round of talks with U.S. government officials in Washington. However, reaching a trade agreement between the two countries remains distant, with one obstacle being Trump's targeting of China.

The report noted that in recent years, many Chinese companies have extended production lines to Vietnam. These are legitimate flows within the supply chain, but the Trump administration attempted to redefine them as "illegal transshipment," pressuring Vietnam to crack down hard and sever ties with China’s supply chain. Analysts pointed out that this has brought heavy pressure on countries relying on Chinese production for exports. For Asian countries, cutting off the supply chain with China would take decades and come at a huge cost.

Workers ironing clothes inside a Vietnamese factory - U.S. media

Data shows that Vietnam was the biggest beneficiary of the tariffs imposed by Trump during his first term. Vietnam's trade surplus with the United States jumped from $38.3 billion in 2017 to $123.5 billion in 2024.

The report pointed out that after Trump announced the so-called "reciprocal tariff" in his second term, Vietnam faced severe challenges. Faced with U.S. pressure, Vietnam's position was very awkward. The challenge for Vietnam lies in proving that the products it exports to the U.S. are made in Vietnam, not China.

Adam Sitkoff, executive director of the American Chamber of Commerce in Vietnam, said: "Trump's top priority is to get Vietnam to address the so-called 'transshipment' issue and ensure that both sides can sign agreements indicating that Vietnam is taking action."

Vietnam was one of the first countries named by U.S. President Trump, willing to negotiate on tariff issues. Initially, Trump announced a 46% so-called "reciprocal tariff" on Vietnam, which was later temporarily reduced to 10%, prompting both sides to initiate negotiations.

On April 22, Vietnamese Prime Minister Pham Minh Chinh requested relevant departments, industries, and especially the negotiation delegation to prepare for all aspects of talks with the U.S., promoting balanced and sustainable development of Vietnam-U.S. trade; not complicating issues, not affecting international agreements Vietnam participates in, not affecting other markets due to a specific market, and taking appropriate measures to achieve mutual benefits, harmony of interests, and shared risks.

Priyanka Kishore, an economist in Singapore and founder of consulting firm Asia Decoded, said: "It's difficult for Vietnam to prove to the U.S. government that this is not simply about transferring Chinese goods to Vietnam. China is Vietnam's largest supplier of intermediate goods, so if you increase exports to the U.S., you will see an increase in imports from China." The report mentioned that Vietnam and other Asian countries rely on China for finished product supplies.

The report noted that in recent years, many Chinese companies have extended production lines to Vietnam, which is a legitimate flow within the supply chain. However, the Trump administration did not agree.

In response, Deborah Elms, senior director of the Hinrich Foundation's trade policy, bluntly stated: "The U.S. seems to assume that all Chinese products are default transshipments, so they want to suppress every single product coming from China."

Elms also said: "Governments in Asia are being asked by the U.S. to redefine supply chains, but this may take decades to complete. And what are the benefits? Unknown."

The New York Times reported that cutting ties with China's supply chain is extremely complex and difficult for all countries around the world. Most of the goods Americans buy have raw materials from China, whether it be plastic in children's toys, rubber in shoes, or threads in shirts. For Vietnam's textile industry, excluding China would bring significant problems.

Tran Nhu Tung, vice president of the Vietnam Textile Garment Association, said that about 60% of Vietnam's fabrics are imported from China. He said: "Without Chinese raw materials, we cannot produce products. Without the U.S., Vietnam cannot export finished products. Therefore, the Vietnamese government must find a balance between China and the U.S., which is very difficult for them."

As early as April, foreign media cited messages saying that the Trump administration was preparing to pressure other countries during tariff negotiations, requiring them to limit trade with China in exchange for U.S. tariff exemptions.

At that time, a spokesperson for the Ministry of Commerce emphasized that facing unilateralism and protectionism, no country can remain unscathed. If international trade regresses into the "law of the jungle" of survival of the fittest, all countries will become victims. China is willing to strengthen unity and coordination with all parties, work together to respond, jointly resist unilateral bullying behavior, safeguard its own legitimate rights and interests, and defend international fairness and justice.

This article is an exclusive contribution from Guancha Net and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7508030812441313829/

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