TGA Victory! U.S./Vietnam Currency Deal Appears to Take Punitive Tariffs Off the Table

On July 19, the United States and Vietnam announced a deal on Vietnam’s currency, seemingly averting the U.S. government’s threat to impose punitive tariffs on U.S. travel goods imports from Vietnam. On July 14, TGA joined 75 industry organizations in opposing a possible move by the Biden administration to impose punitive tariffs on Vietnam under the Office of the U.S. Trade Representative’s (USTR) Section 301 investigation accusing Vietnam of currency manipulation. TGA also strongly opposed punitive tariffs on Vietnam at a December 29, 2020 USTR public hearing. Vietnam is the #2 supplier of travel goods to the U.S. market. In the first five months of 2021, U.S. travel goods imports from Vietnam increased 15.8%, with Vietnam supplying 21.2% of all U.S. travel goods imports during the period.