US border adjustment tax would be knockout blow to Vietnam
President Trump’s proposed tariffs would be devastating for the export dependent trading partner, which not long ago expected to see a boon from the Trans-Pacific Partnership
The young American administration is currently waiting on a 90-day review of US trade imbalances to decide how to end “the theft of American prosperity” by trading partners.
There is cause for concern in Vietnam, which posted a more than US$2.4 billion trade surplus with the US in February of this year alone.
Vietnam is already reeling from the Trump administration’s scrapping of the Trans-Pacific Partnership, which would have likely boosted Vietnam’s exports to the US. Even without the deal, Vietnam’s exports to the US have grown significantly in recent years, more than doubling from 2012 to last year.
Vietnam can only hope that Trump does not make good on his promises.