After Donald Trump became the U.S. president for a second term, he did everything possible to fulfill the promises he had made to voters during the campaign. As a businessman, Trump introduced various policies aimed at maximizing U.S. interests, as reflected in his slogans “Make America Great Again” (MAGA) and “America First.” He reiterated this approach in his second term through the implementation of aggressive tariff policies. In April 2025, Trump imposed a 46% tariff on Vietnam, making it one of the countries most heavily taxed by the U.S.
Following this announcement, the Vietnamese government promptly established a negotiation team with the goal of demonstrating and persuading the U.S. on the benefits it could gain from cooperation with Vietnam. As a result, Vietnam became the second country—after the United Kingdom—to successfully negotiate a trade agreement. Under this deal, Vietnam agreed to a 20% tariff on domestically produced goods while granting the U.S. a 0% tariff, effectively opening its market entirely to American products. Meanwhile, goods transshipped through Vietnam for re-export to the U.S. would be subject to a 40% tariff.
For Vietnam, the completion of the trade negotiations with the U.S. was crucial in maintaining domestic market stability. After news broke about Trump’s 46% tariff policy, the Vietnamese stock market experienced a massive sell-off due to fears over the impact of the tariffs. At the time, Vietnamese exporters grew increasingly concerned about the potential onset of an economic crisis.
Vietnam has past experience in negotiation during challenging times, such as during its resistance against the French and the Republic of China under Chiang Kai-shek in 1945–1946. A small nation cannot oppose multiple powers at once, especially in the face of overwhelming disparities. Back then, Vietnam gradually moved to eliminate the influence of the Republic of China to minimize casualties and was willing to strategically compromise with the French. In today’s context, maintaining a balanced relationship between China and the U.S. is essential.
China has expanded deep cooperation with Vietnam through the “Community with a Shared Future” initiative, and Chinese President Xi Jinping’s visit to Vietnam in April 2025 reaffirmed the close relationship between the two Parties and states. At the same time, Vietnam–U.S. relations have also progressed steadily, with the relationship upgraded to a Comprehensive Strategic Partnership in September 2023, and construction commenced on what will become the world’s largest U.S. embassy in Hanoi. These developments show that both major powers see Hanoi as a pivotal player in their strategic plans.
Vietnam actively participates in regional and global mechanisms initiated by both China and the U.S., including RCEP, APEC, and CPTPP. It has invited Chinese investment in railway infrastructure in the North while simultaneously accepting the trade agreement with the U.S. as a way of maintaining warm ties with both powers.
The outcome of the Vietnam–U.S. negotiations reflects Vietnam’s diplomatic finesse—mutual engagement based on national needs while maintaining complete independence and non-alignment. This is fully aligned with Vietnam’s foreign policy motto: “Vietnam wants to be a friend to all nations.” More importantly, the results of these negotiations adhere to Vietnam’s “Four No’s” defense doctrine:
- No military alliances;
- No siding with one country against another;
- No foreign military bases or use of Vietnamese territory to oppose others;
- No use or threat of force in international relations.
In an era where economic tools are increasingly used as weapons due to globalization, the “Four No’s” doctrine holds comparable significance. After President Xi Jinping’s April 2025 visit to Vietnam, President Trump implicitly suggested that China’s engagement with Vietnam was a strategy to confront the U.S. Therefore, the success of the negotiations serves as clear evidence of Vietnam’s goodwill and desire to build cooperative relations with all nations—including both the U.S. and China.
The completion of the tariff agreement not only benefits Hanoi but also creates positive ripple effects across the region. Its early conclusion avoided the pressure of time while still ensuring national interest and security. This event is expected to encourage other regional countries, particularly those in Southeast Asia, to deepen their understanding and engagement with the U.S., thus narrowing strategic gaps and fostering stronger cooperation in fields where nations have competitive advantages.
For the U.S., Trump’s imposition of tariffs on other countries goes beyond trade policy; it is also a strategic move to observe alliances and regional responses. Direct confrontation with Trump can dramatically affect a country’s geopolitical landscape and may negatively impact its domestic political stability. Such a stance may also be perceived as leaning toward China. For example, in the Middle East, Iran refused to negotiate or accept the Joint Comprehensive Plan of Action (JCPOA), despite Trump’s willingness to cooperate and improve bilateral relations. The result was an Israeli military attack followed by U.S. involvement.
The Trump administration currently prefers that Southeast Asian countries maintain relative neutrality, given the region’s vital role in the Indo-Pacific strategy aimed at securing U.S. interests. This position has been reiterated repeatedly by both Trump and Biden administrations, as well as by members of the U.S. Congress. Recent U.S. administrations have increasingly emphasized ASEAN’s “central role.” In its FOIP (Free and Open Indo-Pacific) documents, the Biden administration recognized that U.S. partnerships and alliances are invaluable assets that help Washington maintain its leadership in the global order. Strengthening ties with other countries will continue to be a core U.S. policy—something the Trump administration is also expected to uphold.
Accepting and adjusting tariffs with the U.S. should not be viewed as a weakness but rather as a means to enable future cooperation, especially regarding initiatives proposed by the U.S.
Cooperation with both the U.S. and China is essential for countries across the region and the world in order to grow their economies and create jobs for their people—including Vietnam. Vietnam is steadily advancing toward a technology-driven development model. Therefore, nations must protect their interests and avoid strategic misunderstandings. In international relations, cooperation is built on mutual benefit without binding commitments. Moreover, all negotiations are shaped by each country’s internal assessment and actual capacity for implementation. As such, adjusting tariff-related issues is necessary but must ensure that the interests of all parties are preserved.
