In a transformative development for global trade, the geopolitical landscape shifted significantly on Friday morning as a major manufacturing powerhouse signaled a willingness to capitulate to the burgeoning American tariff regime. President Donald Trump announced that Vietnam’s top leader, To Lam, has expressed a groundbreaking readiness to eliminate all tariffs on United States goods. This overture, characterized by the President as the result of a “very productive” phone conversation, suggests that Vietnam is moving to preemptively neutralize the economic impact of aggressive new duties imposed on its exports to the American market. For economists and policymakers, the “blink” from Hanoi represents a pivotal moment in the administration’s strategy of leverage-based diplomacy, potentially setting a precedent for other nations navigating the new era of American protectionism. Continue reading…
