Solutions by Vietnam to Contain Reciprocal Tariff by United States

Abstract

The US reciprocal tax aims not only to balance trade but also to adjust the international trade system and reshape the world order. Therefore, the 46% reciprocal tax on goods from Vietnam needs to be analyzed in terms of trade, investment and geopolitics. In particular, the paper proposes the negotiation over the tariff needs to be equipped with the investment solutions such as increasing the purchase of US government bonds. In the long term, increasing production capacity to consolidate national potential is a necessary solution for Vietnam to stand firm within the global trade instability.