US president Donald Trump's top trade adviser, Peter Navarro, has outrightly refused Vietnam's proposal to cut its tariffs on US imports to zero, according to a report. The proposal had been extended by Vietnam's Deputy prime minister Bui Thanh Son and was a move aimed at postponing the 46% tariff imposed by Trump on Vietnam as the country charges a 90% tariff on US imports, reported Newsweek.
Peter Navarro Rejects the Proposal
But later in the day, Navarro, the senior US trade counsellor, turned down the offer in an appearance on Fox News, calling it a "national emergency," as per the report. Navarro indicated that the US would not negotiate with Vietnam on this issue, saying that the trade deficit with Vietnam had "gotten out of control" and complaining that the nation was "cheating" by relabeling Chinese goods as its own and employing unfair trade practices, according to Ne ..
Trade Deficit Data
Navarro also highlighted that "If you simply lowered our tariffs and they lowered our tariffs the zero, we'd still run about $120 billion trade deficit with Vietnam," quoted Newsweek.
The United States currently runs a $123.5 billion trade deficit with Vietnam because of $13.1 billion in exports in 2024 and $136.6 billion in imports, as per data provided by the Office of the US Trade Representative.
FAQs
Why did Vietnam propose to lower its tariffs on US goods?
Vietnam hoped to reduce the impact of US tariffs and avoid the proposed 46% tax on Vietnamese imports by offering to cut its own tariffs to zero.
What was Peter Navarro’s response to the offer?
He rejected the proposal, saying that the trade deficit with Vietnam was a national emergency that needed urgent action.
Source Name : Economic Times