Currency Manipulation Agreement Averts Tariffs on Vietnamese Goods
After a joint statement from the Treasury Department and the State Bank of Vietnam saying the two sides have resolved U.S. concerns over Vietnamese currency policy, U.S. Trade Representative Katherine Tai said she commends Vietnam's commitment to address U.S. concerns in that matter. Vietnam said it does not manipulate its currency for competitive advantage, but rather manages its exchange rate to control inflation and maintain macroeconomic stability, but it will make its actions more transparent, and will allow the dong to move with market fundamentals as long as macroeconomic stability can continue.
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Tai said, "Vietnam can set an important example for the Indo-Pacific region by allowing its exchange rates to move in line with underlying economic fundamentals.” She said that USTR will monitor Vietnam's implementation of its commitments to ensure that it addresses the currency practices "that were found actionable in the Section 301 investigation.”
The press office at USTR did not respond to questions about the status of the timber investigation for Vietnam, which could also lead to Section 301 tariffs on Vietnamese imports.
John Murphy, senior vice president for international policy at the U.S. Chamber of Commerce, said in an emailed response to a request for comment: “The Chamber applauds this news. Imposing tariffs on goods from Vietnam would have hurt American families, workers, and companies. By contrast, Treasury’s financial diplomacy is well suited to addressing currency issues, which call for a strategy of coherent and consistent engagement with foreign partners.”