If the two countries can reach an agreement, the US may reduce the high new tariffs on Vietnamese imports to "zero".

California Governor said he would seek to establish "strategic" relations with global trading partners to reduce the impact of tariffs on California businesses.

US President Donald Trump posted on social media platform Truth Social that he had a productive conversation with Vietnam's leaders, discussing the possibility of reducing the high tariffs on Vietnamese imports to the US to "zero" through negotiations.

"I just had a very productive call with Vietnam's leader. Vietnam wants to strike a deal with us and they are willing to reduce tariffs to zero," Trump wrote. He also added, "I thank him on behalf of our country and look forward to meeting him in the near future."

Previously, Trump announced a 46% tariff on Vietnamese goods, which was planned to take effect next week. This statement provided a positive signal for potential trade negotiations between the two countries in the future. After this news was released, the stocks of companies like Nike, which produce goods in Vietnam, rose. Nike's stock price once increased by about 5%. Approximately 25% of Nike's footwear products are produced in Vietnam.

Trump said the day before that equal tariffs have put the US "in a dominant position", and now these countries "are willing to do anything for us".

After the release of US tariff policies, the stock market fell several times. On Friday, California Governor Newsom announced that he would seek to establish "strategic" relations with global trading partners, especially when some countries impose retaliatory tariffs on the US. Newsom said he would push these countries to exclude tariffs on California-made goods, reducing the impact on California businesses in the global market.

In a video posted on social media platform X, Newsom stated, "Trump's tariff policy does not represent all Americans." He emphasized that California, as the "pillar" of the US economy, will strive to maintain stable global trade relations and support California businesses from unnecessary trade frictions. California's agriculture, especially the almond industry, faces significant risks. If other countries impose retaliatory tariffs on the US, California's almond exports could lose billions of dollars.

In addition, California's dairy products, wine, and other industries hold important positions in the international market. As other countries adopt retaliatory measures against the US, California's agricultural exports face severe challenges.

FOX News first reported this news. According to data, California is the fifth largest economy in the world and an important engine of economic growth in the US, with a GDP of $3.9 trillion, 50% higher than Texas, the second largest state in the US.

Newsom said that Trump's administration's tariff policies and retaliatory tariffs from other countries may have significant impacts on California's businesses, farmers, and workers. California-made goods have close trade relations with Mexico, Canada, and China. The impending tariff increase may cause major disruptions to these cross-border supply chains, raising commodity prices, and ultimately shifting the burden to California consumers.

In addition, California must also face the problem of post-wildfire reconstruction. The supply of construction materials may be affected. The US currently imposes more than 14% tariffs on Canadian timber, which may rise to nearly 27%. Newsom said this would have adverse effects on California's reconstruction efforts.

Meanwhile, Federal Reserve Chairman Powell said on Friday that tariff policies may lead to rising inflation and slow economic growth, creating a "highly uncertain economic outlook". In response to Trump's previous public calls for the Fed to lower interest rates, Powell responded that he would not easily adjust monetary policy without clear data support.

"Our responsibility is to keep long-term inflation expectations stable and ensure that one-time price increases do not turn into persistent inflation problems," Powell said.

Source: rfi

Original article: https://www.toutiao.com/article/7489613092838720040/

Disclaimer: This article only represents the author's personal views. Please express your attitude in the [Like/Dislike] buttons below.