To avoid a large tariff due to having a large trade surplus with the US, Vietnam announced that the nation will lower tariffs on several US products and approve Starlink services.
According to Nguyen Quoc Hung, head of the Finance Ministry’s tax policy department, tariffs on American liquefied natural gas (LNG) from 5% to 2%, while automobiles will see a decrease from a range of 45% to 64% down to 32%. Additionally, the tariff on ethanol will be lowered from 10% to 5%.
Tariff on ethane will also be removed, while duties on other imports, such as chicken thighs, almonds, apples, cherries and wooden products, will also be reduced. Hung stated that these cuts were meant to improve trade balances with Vietnam’s trade partners, with the decree expected to be ready within this month before taking effect later.
Meanwhile, although Vietnam has not yet imported LNG from the US, it has been engaging in discussions with American suppliers to secure LNG for its upcoming power plants. The first two of these facilities are set to begin commercial operations by June this year.
As for the Starlink services, Vietnam now allows SpaceX to launch its satellite internet service in the country, while maintaining full ownership of the service. Some analysts speculated that this may help the nation dodge US tariffs.
