Vietnam Offers U.S. Trade Concessions to Avoid Tariffs Amid Tensions Over Chinese Transhipment:

Vietnam is offering the U.S. a series of trade concessions to avoid punishing tariffs and restore favorable trade relations. These measures include cracking down on Chinese transhipment and tightening export controls on sensitive goods to China, reflecting Hanoi’s delicate balancing act between major global powers.

U.S. Tariff Threat and Vietnam’s Response

Facing a 46% tariff imposed under former President Donald Trump's “Liberation Day” campaign, Vietnam is seeking to reduce duties to 22–28%. The tariffs, temporarily suspended for 90 days, triggered urgent negotiations between Vietnamese officials and the U.S. Trade Representative.

Vietnam has pledged to address concerns over trade fraud, especially allegations of Chinese products being mislabeled as “Made in Vietnam” to evade U.S. tariffs. U.S. officials, including trade advisor Peter Navarro, have expressed skepticism about Hanoi's commitment to genuine trade reform.

Emergency Action and Crackdown on Transhipment

Following Trump’s announcement, Vietnam's Government Office organized an emergency meeting with trade officials. Authorities were tasked with crafting a plan to curb illicit transhipment, which involves routing Chinese goods through Vietnam without substantial processing.

Vietnamese customs were given a two-week deadline to enhance screening procedures and clamp down on fraudulent labeling, though the government remains cautious not to provoke China, a key investor and regional power.

Sensitive Exports and Dual-Use Technology Controls

Vietnam is also planning new controls on the re-export of dual-use items such as semiconductors. A draft decree proposes tighter rules around the movement of goods that could serve civilian and military purposes. This aligns with U.S. efforts to limit Chinese access to advanced technologies.

Trade partners, including the U.S., have requested Hanoi to restrict unauthorized tech transfers, particularly those originating from U.S. companies and passing through Vietnam en route to China.

Strategic Gestures Toward the U.S.

To further reassure Washington, Vietnam has approved Starlink's satellite internet services, controlled by Elon Musk, under favorable terms. Musk acknowledged the move by reposting related news on April 4. This is seen as a strategic alignment with U.S. interests in digital and space infrastructure.

Simultaneously, Vietnamese carriers secured U.S.-backed loans to buy Boeing aircraft, reinforcing trade cooperation with American aerospace firms.

Maintaining Balance with China

Vietnam’s diplomatic balancing continues as it prepares to host Chinese President Xi Jinping. During his visit, Vietnam is expected to approve the use of COMAC aircraft, signaling openness to Chinese investments even as it complies with U.S. requests for tighter export scrutiny.

Vietnam’s nuanced foreign policy aims to maintain economic ties with both powers without alienating either.