Trump Pushes Vietnam to Lead Effort in Reducing Dependence on China

During his first term, President Trump urged companies to reduce their reliance on China. His administration is now intensifying efforts by encouraging other nations to remove China from their supply chains.

The recent preliminary trade agreement between the United States and Vietnam marks a significant advance in this strategy. While details remain limited, the deal proposes a 20 percent tariff on Vietnamese exports to the U.S., which is lower than the higher tariff rates previously threatened.

Importantly, the agreement imposes a 40 percent tariff on goods considered transshipments—products that originate in another country but are routed through Vietnam before export.

This measure primarily targets China, which has reportedly used Vietnam and other neighboring countries to circumvent American tariffs. Similar provisions could be incorporated into future U.S. trade agreements with other Southeast Asian nations aiming to avoid steep tariffs taking effect imminently.

U.S. trade officials are also urging export-driven neighbors like Indonesia to limit the inclusion of Chinese components in their supply chains. They are requesting Thailand to scrutinize foreign investments more closely to prevent Chinese businesses from establishing a foothold. Additionally, some countries face pressure to consider export restrictions on key technologies such as semiconductors.

According to geopolitical analysts, the administration is advocating for a strategic decoupling from China as a prerequisite for trade partnerships with the United States. The critical question remains whether these countries will comply with this approach.