In a strategic move to address its growing trade surplus with the United States, Vietnam has announced significant tariff reductions on various American imports, including liquefied natural gas (LNG), automobiles, and ethanol. The decision, confirmed by Nguyen Quoc Hung, head of the Finance Ministry's tax policy department, is part of Vietnam’s broader efforts to maintain balanced trade relations and potentially avoid punitive tariffs from Washington.

As Vietnam’s trade surplus with the U.S. exceeded $123 billion last year, the move signals the country's intent to ease economic tensions. The United States has recently ramped up scrutiny of trade imbalances, with President Donald Trump hinting at imposing reciprocal tariffs on several nations starting April 2, though he has also suggested that some countries may be exempted. By voluntarily reducing tariffs, Vietnam seeks to reinforce its commitment to fair trade practices and strengthen its partnership with the U.S.

The tariff cuts will not be limited to LNG, vehicles, and ethanol but will also extend to other American products such as chicken thighs, almonds, apples, cherries, and wooden goods. The Vietnamese government is expected to finalize the decree implementing these changes within the month, and it will take effect immediately upon completion.

Although Vietnam has not yet imported LNG from the U.S., it is currently in discussions with American suppliers to support its upcoming LNG power plants, the first of which is slated to begin commercial operations by June this year. The tariff reductions align with Vietnam’s long-term strategy to diversify its energy sources while fostering stronger trade ties with key partners.

As the global trade landscape evolves, Vietnam’s proactive stance on tariff reductions highlights its commitment to maintaining stable and beneficial economic relations with the United States. Whether this move will be enough to ease U.S. concerns and prevent potential trade restrictions remains to be seen.