Washington Gets at China Through Vietnam
Washington pressures Vietnam to reduce its China connections, threatening huge tariffs.
Milton Ezrati
7/8/2025|Updated: 7/8/2025
Commentary
Washington has kept up what can only be described as relentless pressure on China. In one aspect of this campaign, it imposed 20 percent tariffs on Vietnam but increased them to 40 percent for goods largely made outside the country, which the agreement describes as “transhipped” goods coming through Vietnam.
In this, the Americans clearly have their eye on China. They want to stop practices in which Chinese businesses use Vietnamese connections to avoid American tariffs. U.S. negotiators note three techniques. In one, Chinese producers send goods first to Vietnam, where they are labeled “Made in Vietnam” and then shipped to the United States.
American negotiators are also claiming that Chinese manufacturers are evading U.S. tariffs by redirecting productive efforts to their operations in Vietnam, which are numerous, and then exporting them to the United States as Vietnamese products. Even when goods are genuinely the product of a Vietnamese company, the Americans note that the finished goods sent to the United States contain so many Chinese components that they might as well be Chinese-made and are accordingly subject to a tariff.
Both Vietnamese companies and the government in Hanoi have expressed sympathy with Washington’s position. Indeed, prominent Vietnamese figures, both in the government and the nation’s business community, welcome the opportunity to move away from Chinese dominance and develop their own products and production facilities. The issue for them is time. Although they can envision a day when they will have their own products and no longer need Chinese components, and are eager for that day to arrive, purely Vietnamese goods for the time being cannot match Chinese costs, volume, or reliability.
In the negotiations currently underway in Washington, the parties are seeking to have the U.S. negotiators allow for a longer period of adjustment. Both the Vietnamese and American sides in the talks are hopeful that a proposed meeting between President Donald Trump and Vietnamese Communist Party leader To Lam can bridge the differences.
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READ MORE: https://www.theepochtimes.com/opinion/washington-gets-at-china-through-vietnam-5883304?ea_src=frontpage&ea_med=section-1
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