Vietnam to buy US defense to tackle trade gap, asks for pause on tariffs

• Vietnam said that it is aiming to buy more U.S. defense and security goods to address a trade gap. The nation is also asking President Donald Trump to delay the imposition of tariffs in order to facilitate negotiations.
• The announcement comes as the Trump administration expresses concerns about Vietnam over intellectual property rights.
• Trump’s tariffs against Vietnam run at a rate of 46%.

---

Full Story

Vietnam is looking to buy more American defense and security products. The promise comes with a request for a 45-day delay in the implementation of U.S. tariffs.

Why is Vietnam making the move?

Vietnam’s prime minister said the move would help address a trade gap. In his announcement on Monday, April 7, he added Hanoi will also aim for quicker deliveries of commercial planes ordered from the United States for Vietnamese airlines.

The U.S. is Vietnam’s largest export market. Hanoi had a more than $123 billion trade surplus with the United States in 2024.

What is Vietnam’s prime minister saying?

The prime minister asked the United States to pause the 46% tariff rate that the Trump administration announced last week to facilitate talks.

The prime minister said in a statement that he is looking to “negotiate with the U.S. side for balanced and sustainable trade, in line with the interest of the two sides.”

What is the Trump administration saying?

White House Trade Adviser Peter Navarro expressed concerns with Vietnam over intellectual property on Monday. Navarro accused Hanoi of “intellectual property theft” and dumping seafood and other goods.

Vietnam responded by saying it will review issues with its monetary policy, exchange rate and address concerns expressed by Navarro. Following a tariff task force meeting on Tuesday, April 8, Vietnam officials announced they are weighing changes to its current bilateral trade agreement with the United States, which includes material on taxes and intellectual property.

How does it play into the bigger picture?

Vietnam’s stock market took a hit with Trump’s tariff announcement. Following the announcement President Donald Trump and Vietnam’s leader To Lam agreed to talk about a deal to remove tariffs after a phone call on Friday, April 4, which Trump called “very productive.”

Vietnam’s vow to buy more U.S. defense goods comes after an arms embargo was lifted in 2016 and as U.S. defense exports to the country have been mainly limited to coastguard vessels and trainer aircraft.

There were reportedly talks in 2024 on the sale of the Lockheed Martin C-130 Hercules military transport planes to Vietnam.