White House trade adviser Peter Navarro said Monday that Vietnam’s offer to eliminate tariffs on US imports is not enough for the administration to lift the new taxes announced last week.
“Let’s take Vietnam. When they come to us and say, ‘We’re going to zero tariffs,’ that means nothing to us.
Examples of “fraud” cited by Navarro included Chinese products routed through Vietnam, intellectual property theft and VAT.
Comments from Navarro came after President Donald Trump told Lam, the general secretary of the Vietnam Communist Party, in his true social post Friday, that he offered to cut tariffs on US products to zero. Later in Monday’s interview, Navarro revised the statement saying that the zero tariff offer would be a “small first start.”
Last week, Trump announced extensive tariffs that caused a sharp sale in the stock market. Wall Street is closely watching news about potential negotiations that could reduce these tariffs.
Vietnam is a manufacturing hub for many companies selling products in the US. Nike. The Trump administration said it would apply a 46% collection to imports from that market. Vaneck Vietnam ETF (VNM) It fell 10% on Thursday after tariffs were announced.
VAT is a system used in many countries around the world, and is similar to the US sales tax, and the Trump administration’s argument that taxes should be counted as a trade barrier has not been widely accepted.
“We have tried at the World Trade Organization since the 1970s to get VAT tax relief, and they have told us every time,” Navarro said Monday.
The trade adviser also said on Monday that VAT would be an issue in negotiations over tariffs with the European Union.
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