The United States has labeled its growing trade deficit with Vietnam as "unsustainable," raising concerns during ongoing tariff negotiations between the two nations, according to Vietnamese state media. The discussions follow U.S. President Donald Trump’s announcement in April of a steep 46% "reciprocal" tariff on Vietnamese exports, set to begin in July.
During a Thursday meeting, U.S. Treasury official Robert Kaproth urged Vietnam to address illegal transshipment and other trade violations. In response, Vietnam’s Deputy Finance Minister Cao Anh Tuan requested U.S. support in facilitating imports of American high-tech goods to help balance trade. Tuan emphasized Vietnam’s interest in U.S. products across sectors like energy, aviation, agriculture, and machinery.
Vietnam’s trade surplus with the U.S. surpassed $123 billion last year, making America its largest export destination. To address the imbalance, Hanoi has cut tariffs on a range of U.S. goods and intensified efforts to curb the re-routing of Chinese products through Vietnamese territory.
Vietnamese Prime Minister Pham Minh Chinh confirmed that the first round of tariff negotiations took place earlier this month and noted that Vietnam is among the first countries the U.S. has engaged in such talks. Meanwhile, Foreign Ministry spokesperson Pham Thu Hang stated that Vietnam is committed to building a balanced and sustainable trade relationship with the U.S., and that negotiations are ongoing with further updates to follow.
The U.S. Treasury has yet to comment on the latest developments. The outcome of these negotiations could significantly impact U.S.-Vietnam economic ties, especially amid heightened global trade tensions and Washington’s focus on reducing deficits with key partners.