Vietnam to Cut Tariffs on U.S. LNG, Cars, and Ethanol Amid Trade Surplus Concerns

Vietnam will reduce tariffs on several U.S. products, including liquefied natural gas (LNG), automobiles, and ethanol, according to the head of the Finance Ministry's tax policy department. The tariff on American LNG will decrease from 5% to 2%, while automobiles will see a reduction from a range of 45%-64% to 32%, and ethanol will be lowered from 10% to 5%. The tariff cuts are aimed at improving trade balances with Vietnam's trade partners, particularly the U.S., with whom Vietnam now has a Comprehensive Strategic Partnership. Vietnam will also eliminate its tariff on American ethane. The decree on the tariff cuts is expected to be finalized this month and will take effect immediately afterward. These measures are part of Vietnam's efforts to reduce its trade surplus with the U.S., which surpassed $123 billion last year.