Commerce Secretary Howard Lutnick told a hearing Wednesday the Trump administration would not accept a reciprocal zero-tariff agreement with Vietnam, citing fears that Chinese goods could enter the US through Vietnam to bypass tariffs, according to a report from Politico.
Key details:
- No zero-for-zero with Vietnam: Lutnick told lawmakers a reciprocal tariff deal with Vietnam is off the table due to transshipment risks.
- China circumvention fears: He said there’s “no way” to allow such a deal without opening the door for Chinese-origin goods to flood the US market through Vietnam.
Lutnick’s comments indicate that Vietnam will remain under strict tariff scrutiny as the Trump administration prioritises blocking indirect Chinese imports.
See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here To Stay?