Vietnam announces that it will reduce tariffs on a number of U.S. goods

The head of the Finance Ministry’s tax policy division said that Vietnam would reduce its tariffs on a number of U.S. goods, including cars and LNG, in order to avoid being charged U.S. duties due to its large bilateral surplus.

Nguyen Qoc Hung, in a late Tuesday statement on the ministry website, said that the tariffs on American LNG would be reduced to 2%, from 5%. The same goes for automobiles, which will drop to 32%, from a range between 45% and 64%. And ethanol, from 10% to 5%.

Hung stated that the tariff reductions are intended to "improve trade balances (with Vietnam's) trade partners," adding that U.S.-Vietnam now have a Comprehensive Strategic Partnership.

Hung stated that Vietnam would also eliminate its tariffs on American ethane. He said that the tariff reduction decree will be completed within the month, and it will go into effect immediately after.

The reductions are part of the series of measures that the Southeast Asian industrial hub announced in recent weeks to reduce Washington's trade surplus, which was over $123 billion.

(source: Reuters)