President Donald Trump announced more winning for America on Wednesday when he said that his economic advisers have made a major trade deal with the Vietnam government. The deal will open the way for American companies to start selling products to the country with no tariffs while also getting the benefits of a new arrangement that guarantees fair competition.
When it comes to economics, the president definitely knows what he’s doing. Bit by bit, he’s helping improve the money situation in our country. It’s a project that takes time, but he’s doing well for only being little over six months in office. Just imagine how good things will be by 2028?
Over the last 10 years, a large number of companies stateside have moved assembly lines to Vietnam to take advantage of cheap labor and a less hostile political climate. This has provided a great alternative to China, however, it has also put pressure on those same companies due to tariffs on imports sold to Vietnam.
via Trending Politics News:
Over the past decade, an increasing number of U.S. companies have migrated their assembly lines to Vietnam, where cheap labor and a less adversarial political climate has provided an attractive alternative to China. But the shift has generated pressure as those same companies were pressed by tariffs on imports sold to Vietnam. That all changes as part of Trump’s new trade deal, which he framed as a “Great Deal of Cooperation” between both countries in a social media post.
“The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping,” the president said in his announcement, the latter a being a reference to goods from other nations that ship through Vietnam.
“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff,” he continued.
President Trump stated his belief that the deal would be a boon to automakers in the United States who have been severely impacted by limited domestic demand and who are eager to export American vehicles without having their bottom line undermined by international tariffs.
“It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,” he said in the post, while thanking General Secretary To Lam for the “absolute pleasure” of partnering together to reach a deal.
The deal on transshipment was particularly important for the Trump administration. White House economic advisor Peter Navarro has referred to Vietnam as a “colony of China” for allowing the country’s communist government to ship its goods through Vietnam, thereby avoiding larger American tariffs.
Vietnam has now become the first country to avoid reciprocal tariffs that President Trump promised to slap with rates between 20 and 50% beginning July 9. The U.S. has previously reached agreements with the U.K., which was not subject to those tariffs, as well as a three-month pause in tariffs with China while both sides work toward a long-term deal.
A copy of the framework has revealed the two countries will be partnering together to “establish favorable rules of origin,” which is a reference to the 40 percent of Vietnamese imports that many believe come from China. The draft also says that Vietnam will increase the strength of its enforcement over areas like intellectual property theft.
“Vietnam will also ‘provide preferential market access’ to American farmers selling poultry, pork, and other agricultural goods overseas. A memo of understanding signed by Hanoi includes promises to purchase $8 billion worth of Boeing aircraft and another $2.9 billion of American agricultural products,” the article concluded.
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