Chinese President Xi Jinping has arrived in Vietnam to kick off a weeklong tour of Southeast Asia, prompting remarks from U.S. President Donald Trump who is watching developments closely.
In a press conference on Monday, Trump suggested that Xi’s discussions with Vietnamese officials, including General Secretary To Lam, were focused on strategizing ways to undermine the United States.
“I don’t blame China; I don’t blame Vietnam,” Trump commented. “That’s a lovely meeting. Meeting like trying to figure out, ‘How do we screw the United States of America?’
During Xi’s visit, China and Vietnam signed a total of 45 agreements covering various topics, including supply chains and railways. Following his time in Vietnam, Xi is scheduled to continue his journey to Malaysia and Cambodia later this week.
Trump’s extensive comments included critiques of his trade and tariff policies. He reiterated his belief that the European Union was created to disadvantage the U.S. in trade and accused his predecessor, Joe Biden, of costing the U.S. “trillions of dollars” in trade losses to China.
He also proposed the possibility of pausing a 25% tariff on car imports, indicating that carmakers might need additional time to move production to the U.S.
Vietnam is currently engaged in trade negotiations with the U.S. This follows Trump’s threat to impose a steep 46% tariff on imports from Vietnam, highlighting the tensions in U.S.-Vietnam trade relations.
In recent years, Vietnam has benefited from the “China plus one” strategy adopted by global manufacturers, which has led to an increase in factories being set up in the Southeast Asian nation. Last year, Vietnam became the third-largest exporter to the U.S. behind China and Mexico.
Previous administrations had sought to strengthen ties with Vietnam to counterbalance the influence of China in the region. In 2023, Vietnam upgraded its relationship with the U.S. to the highest level.
However, Trump’s trade team is specifically focusing on Vietnam’s substantial trade surplus with the U.S., which is expected to rank as the third-largest in 2024.
Vietnam has approximately three months remaining to finalize a deal before U.S. tariffs come into effect. Currently, reports suggest that Vietnam has offered to reduce tariffs on U.S. imports, increase purchases of American products, and more rigorously monitor inbound trade from China.
Treasury Secretary Scott Bessent recently met with Vietnam’s Deputy Prime Minister, Ho Duc Phoc, emphasizing the need for “quick demonstrable progress to resolve outstanding issues,” according to a statement from the U.S. Department of the Treasury.
Despite current discussions, it appears that Vietnam is not a primary focus for Bessent’s trade negotiations. His current priorities lie with the U.K., Australia, South Korea, India, and Japan, as per sources cited by the Wall Street Journal.
In related news, Japanese Prime Minister Shigeru Ishiba stated on Monday that Japan is not planning to offer significant concessions to the U.S. through tariff negotiations. He remarked on the necessity to understand the driving factors behind Trump’s arguments.
On Tuesday, South Korea’s finance minister addressed the country’s intention to delay U.S. tariffs for as long as possible, aiming to finalize a deal post snap presidential elections scheduled for June 3. Alongside this, Seoul announced an increase in support for its domestic chip industry, raising the initiative to $23 billion from last year’s $18 billion commitment.
Trump’s decision to postpone tariffs does not extend to imports from China, where products now incur a staggering 145% duty upon entry into the U.S. Such high tariffs are likely to eliminate all imports from China, disrupt supply chains for U.S. manufacturers, and potentially result in shortages and significant price increases for consumers.
Prior to the weekend, the White House had exempted certain electronic devices, such as smartphones and laptops, from Trump’s “reciprocal tariffs.” As it stands, Chinese-made smartphones now only bear the previously enforced 20% tariff tied to the illegal fentanyl trade.
In a Monday interview with Bloomberg, Bessent acknowledged the unsustainability of tariffs against China and expressed hope for potential negotiations with Beijing. He insisted, however, that any progress toward a deal would require direct discussions between Trump and Xi.
image source from：https://www.yahoo.com/news/trump-grumbles-china-lovely-meeting-093136137.html
