Vietnam Reduces U.S. Import Tariffs to Avoid Tariffs on Starlink

Vietnam has announced a reduction in tariffs on several American imported goods, including liquefied natural gas (LNG) and automobiles, and approved SpaceX’s “Starlink” satellite network service to enter the market. This move is seen as Vietnam’s attempt to avoid being subject to additional tariffs from the United States as its trade surplus with the U.S. continues to expand.

In recent weeks, the Southeast Asian manufacturing and export giant has implemented various measures to expand imports from the U.S. in order to reduce its trade surplus with the country. In 2024, Vietnam’s trade surplus with the U.S. exceeded $123 billion, prompting U.S. President Trump to threaten comprehensive tariffs against this trading partner.

According to a statement released by Nguyen Quoc Hung, Director of the Tax Policy Department at the Vietnamese Ministry of Finance, the new round of tariff adjustments includes reducing the import tariffs on American LNG from 5% to 2%, lowering the import duties on automobiles from the original range of 45% to 64% to 32%, and decreasing the ethanol tariff from 10% to 5%.

Nguyen Quoc Hung stated that the purpose of tariff cuts is to “improve trade balance with Vietnam’s trading partners.” He added that despite the establishment of a “comprehensive strategic partnership” between the U.S. and Vietnam, the two countries have not yet signed a free trade agreement.

Vietnam currently does not import liquefied natural gas from the U.S., but has been in negotiations with American gas suppliers to meet the future needs of a series of natural gas power plants in Vietnam. Two of these power plants are expected to begin commercial operation this June.

Nguyen Quoc Hung added that the tariff reduction decree is expected to be finalized within this month and will take effect immediately upon its announcement. He also mentioned the cancellation of import duties on American ethane, as well as the reduction of tariffs on other U.S. imported goods such as chicken legs, almonds, apples, cherries, and wood products.

Furthermore, according to an official announcement on Wednesday on the Vietnamese government’s official website, SpaceX has been officially approved to trial its “Starlink” satellite network service in Vietnam. However, the ultimate management and supervision authority of this service will remain entirely in the hands of Vietnamese authorities.

Some analysts believe that Vietnam’s decision to allow American companies like SpaceX to enter the market is also a strategy to ease the trade pressure from the U.S.

The White House has stated that Trump is expected to implement reciprocal tariffs on trade partners on April 2. However, Trump hinted on Monday that some countries may be granted exemptions, showing that the tariff policy may be more flexible than originally anticipated.

(This article references reports from Reuters)