Washington, New York Times News Service. After China, the Trump administration is now tightening on trade from Vietnam. The Trump administration has started investigating the trade from Vietnam on Friday itself. After starting such an investigation, it can also be said that the Trump administration has now opened the front for a global trade war. Such an investigation by Trump may open a new front in the global trade war.
The US Trade Representative’s office said the administration would begin to look into two issues. Vietnam’s import and use of timber, which is said to have been illegally harvested and traded. At the same time, it will also check whether Vietnam has devalued its currency, so that its products can be manufactured abroad in a wrong way.
US Trade Representative Robert E. Lightzer said in a statement that President Donald Trump is committed to tackling unfair trade practices that harm America’s workers, businesses, farmers, and the farm. We will carefully review the results of the investigation, and then determine whether it would be appropriate to take action against the country that has done so to harm the business.
The administration will conduct an investigation under section 301 of the Trade Act of 1974, while the legal provisions that the Trump administration used to launch its trade war against China. If the agency determines that Vietnam’s trade unfairly undercuts American’s businesses then the United States can move to impose duties on the country. The agency has not announced a timeline for the investigation but it is unlikely to conclude before the presidential election.
Vietnam is a major supplier of machinery, apparel, footwear and other products to the United States. US imports from Vietnam and the US trade deficit with the country increased in 2019. After the US imposed tariffs on Chinese goods worth more than $ 360 billion, many manufacturers sought to move their operations outside China with low-cost labor to other countries, including Vietnam and Mexico. In 2019, the Treasury Department included Vietnam in a watch list for its currency practices, along with China, Germany, Ireland, Italy, Japan, Malaysia, Singapore and South Korea.
The Trump administration has also paid attention to Vietnam’s currency practices, arguing that by artificially lowering the value of its currency, Dong, Vietnam can make its products cheaper for buyers abroad and thus American May reduce competitors.
In 2019, the Treasury Department included Vietnam in a watch list for its currency practices, along with China, Germany, Ireland, Italy, Japan, Malaysia, Singapore and South Korea. In August, the Treasury Department also said that Vietnam had manipulated its currency in a trade case that the Department of Commerce brought against Vietnam tire manufacturers.
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