Key Takeaways:

• Vietnam will reduce tariffs on American liquefied natural gas (LNG) to 2% and automobiles to 32%.
• The tariff cuts aim to address Vietnam's substantial trade surplus with the US, exceeding US$123 billion last year.
• The measures are a part of broader efforts to strengthen trade relations with the United States ahead of potential tariffs from the Trump administration.

Vietnam's Ministry of Finance has announced upcoming tariff reductions on various US imports, marking a pivotal step in strengthening economic ties with the United States as the nation grapples with the looming prospect of additional tariffs from the Trump administration. According to officials, the tariff on SCMP, liquefied natural gas will see a significant decrease from 5% to 2%, while tariffs on automobiles will be reduced to 32% from a range of 45% to 64%.

These moves are part of a broader strategic initiative to mitigate the trade imbalance with the US, which has seen Vietnam running a significant trade surplus, quantified at over US$123 billion in the previous year. Nguyen Quoc Hung, the head of the Finance Ministry's tax policy department, emphasized that these tariff changes represent a commitment to improving trade relations and are expected to take effect shortly after a decree is finalized this month. In addition to LNG and automobiles, the tariff reductions will also extend to ethanol, which will decrease from 10% to 5%, and several agricultural products such as apples, frozen chicken, and almonds Bangkok Post.

As Vietnam positions itself to enhance bilateral trade ties, it has also approved the launch of Starlink, a satellite internet service by SpaceX, aiming to bolster technological connections with the US. This approval has been interpreted as another effort to secure a favorable trading environment amidst rising pressures from potential US tariffs Channel News Asia.

Overall, the proposed tariff cuts and enhanced trade infrastructure demonstrate Vietnam's proactive approach to sustaining and improving its trade relationship with the United States as both nations prepare for future negotiations.

For more information, read the full articles at SCMP, Bangkok Post, and Channel News Asia.