The United States (US) and Vietnam have completed a second round of trade negotiations on tariffs. Plans are in place to continue discussions on unresolved issues, Vietnam’s trade ministry announced on May 22, 2025.

The talks took place in Washington from May 19 to May 22. They involved Vietnam’s Trade Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer.

The ministry’s statement included photos from the meetings. The statement indicated “positive progress” in identifying areas of near consensus and others that require further discussion.

A third round of talks is scheduled for early June.

Vietnam, which relies heavily on exports to the US, currently faces a 46% tariff rate imposed by Washington. This is one of the highest in the world. The US government has paused these duties until July.

The US Trade Representative has not yet commented on the negotiations.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Vietnam’s remarkable 30-year trade transformation faces its biggest test

Vietnam’s journey from trade embargo to critical U.S. partner represents one of the most dramatic economic transformations in recent history.

Bilateral trade skyrocketed from US$1.5 billion in 2001 to over US$149.6 billion in 2024, a staggering growth trajectory following the normalization of relations that began with President Clinton lifting the trade embargo in 1994 1.

This growth accelerated dramatically after Vietnam received Permanent Normal Trade Relations status in 2006, enabling its WTO accession in 2007 and establishing the foundation for today’s complex trade relationship 2.

The current negotiations are particularly significant as they come amid Vietnam’s US$123.5 billion trade surplus with the US (the third-largest after China and Mexico), creating unprecedented pressure on a relationship that took decades to build 3.

Vietnam’s export-dependent economy, with approximately 12-28% of its GDP tied to US exports, makes these tariff negotiations critically important for its economic stability and growth trajectory 4.

2️⃣ Caught in the middle: Vietnam’s delicate balancing act between major powers

Vietnam’s trade predicament reflects its complex position between competing geopolitical forces, with economic and strategic considerations deeply intertwined.