Vietnam, Taiwan Capitulate: Offer To Remove All US Tariffs, Boost Investment

Last week we explained that this particular trade war will be all about the deals that Trump announces as he pulls the country and market from the trade war abyss.

That was quick: Thailand to Negotiate With the US on 36% Imposed Tariffs: PM

Next: everyone else

— zerohedge (@zerohedge) April 3, 2025

Everyone else…. starting with Vietnam, which as we profiled Thursday was slapped with some of the highest reciprocal tariffs…

… crushing countless US consumer companies who rely on cheap Vietnamese exports.

Sure enough, confirming that Trump’s “dealmaking” was about to shine, on Friday Trump posted on his Truth Social account, announced that he had a “very productive” call with the head of the Vietnamese communist party, adding that if Vietnam wants to cut their tariffs to “ZERO”, all they have to do is “make an agreement with the U.S.”…

Fast forward just one day, and we have an example of the first official capitulation by a trading counterparty as Bloomberg reports that Vietnam has offered to remove all tariffs on US imports after Donald Trump announced a 46% levy on the Southeast Asian nation, according to an April 5 letter from Vietnam’s communist party.

The offer was made by party chief To Lam to the US president in a letter that was seen by Bloomberg. In the letter, Lam requested that the US not apply any additional tariffs or fees on Vietnamese goods and asked to postpone the implementation of the tariff announced by Trump last week by at least 45 days after April 9.

The letter confirms comments made by Trump on Friday on his Truth Social network, following a call between the two leaders. Vietnam, which has increasingly become a key manufacturing and export alternative to China, was slapped with one of the highest tariff rates worldwide last Wednesday.  

Expect all the companies profiled as the biggest casualties from the Vietnam tariffs to soar, as the market realizes that for all the posturing, Trump’s tariffs were just that: a negotiating chip to minimize trade barriers against the US, which as Vietnam so aptly demonstrated, are now well on their way out.

And now we wait to see just how much the limping Vietnamese dong, which on Friday drooped to an all time low, will firm up on the news…

In addition to the news about Vietnam bending the knee, The Epoch Times’ Jacob Burg reports that Taiwan’s President Lai Ching-te on April 6 said his nation would offer zero tariffs and no retaliation as the start of negotiations with the United States while vowing to remove trade barriers.

Lai said Taiwanese companies will also increase their investments in the United States. The comments were made in response to sweeping import tariffs announced by President Donald Trump  on April 2. Taiwan has a trade surplus with America and will see a 32 percent tariff on its imports into the United States.

The new tariffs do not, however, affect semiconductors, one of Taiwan’s largest exports.

While meeting with executives from small and medium-sized companies at his residence, Lai noted that because Taiwan depends on trade, its economy may face difficulties dealing with U.S. tariffs but that their impacts could be minimized.

“Tariff negotiations can start with ‘zero tariffs’ between Taiwan and the United States, with reference to the U.S.-Canada-Mexico free trade agreement,” he said. Trump has said anything that is compliant with the U.S.-Canada-Mexico agreement will not be subject to additional tariffs.

Lai added that his Cabinet is considering what extensive agricultural, industrial, and energy purchases to make from the United States, as his defense ministry has so far offered its weapons purchase plans.

“All purchases will be actively pursued,” he said.

Additionally, non-tariff barriers are a signal for the United States to evaluate the fairness of trade, and Taiwan will proactively settle non-tariff barriers that have endured for multiple years to smoothen trade negotiations with America, Lai added.