The United States Decided To Suspend The Imposition Of Tariffs On Imports From Vietnam

The United States has decided to suspend tariffs on imports from Vietnam, thereby reducing the burden on Vietnamese footwear and clothing brands and retailers.

Recently, the U.S. Trade Representative Office (USTR) announced the results of its investigation on Vietnam's exchange rate manipulation and article 301. It said that Vietnam's actions, policies and practices, including excessive intervention in the foreign exchange market and other relevant measures, are unreasonable and hinder us trade.

U.S. trade representative Robert Lighthizer said unfair practices, policies and practices that have led to currency devaluation damage U.S. labor and enterprises and need to be addressed. I hope that the United States and Vietnam can find solutions to their concerns.

USTR has not taken any specific action on the findings of the investigation report at present, but will continue to evaluate the various options available. The article 301 investigation on Vietnam's illegal import of wood products from a third country to the United States is still under way.

Steve Lamar, President and chief executive of the American clothing and Footwear Association, said tariff increases have never been a good time, but would be particularly harmful because all Americans and the industry continue to be affected by covid-19.

Tariffs are imposed on US consumers, US workers and US businesses. In the trade war between the United States and China, this has become very obvious. Vietnam is an important trading partner, especially when companies try to rebalance their purchases from outside China. The imposition of tariffs on imports from Vietnam would hurt all efforts and investors.

We look forward to continuing our dialogue with USTR under the leadership of new trade representative Katherine Tai and the Biden administration to seek remedial measures with Vietnam, he added.

A letter signed by the executive directors of 200 enterprises and trade associations of many industries has been submitted to the 301 hearing of USTR on Vietnam's currency operation and urged the US government to avoid using tariff as a remedy in the investigation.

If the United States imposes tariffs on imports from Vietnam, it means that more than half of clothing and footwear products, and more than 3 / 4 of accessories sold in the United States, will be impacted. The maximum cumulative tariff is 25-50%.

Many companies, including Nike and Adidas, have turned to Vietnam for procurement, which is a direct result of China's 301 tariff and supply chain diversification. Lower wages and vertically integrated supply chain make Vietnam increasingly attractive to buyers.

Vietnam is the second largest supplier of clothing, footwear and travel goods to the United States, a major supplier of raw materials for U.S. manufacturers, and a major market for U.S. textile and chemical exports.

According to the U.S. International Trade Commission, U.S. textile and apparel exports to Vietnam increased by $97 million from 2015 to 2019. At the same time, the U.S. shoe exports to Vietnam increased by 170 million US dollars.