The United States Trade Representative (USTR) announced Friday that the U.S. would not initiate Section 301 Tariffs of up to 25 percent on Vietnamese imports in response to currency manipulation.
A USTR investigation, launched in October 2020, found Vietnam intervened in foreign exchange markets using excessive and one-sided policies and practices that placed an unreasonable burden on U.S. commerce. A subsequent U.S. Department of Treasury investigation did not collaborate the USTR findings and recommended against Section 301 tariffs on Vietnamese imports.
SFIA joined other business interests in a July 14 letter to the USTR opposing the use of tariffs in response to Vietnam’s currency issues.
“This is a huge relief for our industry,” said Tom Cove, president and CEO, Sports & Fitness Industry Association (SFIA). “At a time when almost every one of our member companies is scrambling to address multiple supply chain challenges, it is good news to take cost increases from potential new tariffs off the table. We are grateful to the Administration for listening to our concerns.”
The USTR will rely on an agreement between the U.S. Department of the Treasury and the State Bank of Vietnam to resolve the currency issues.
The USTR and the U.S. Treasury will monitor Vietnam’s implementation of its commitments under the Agreement to ensure compliance and fair valuation. Should Vietnam fail to comply with the Agreement, tariffs could apply to its imports.
The Federal Register notice with background on the investigation and plan in the future can be found here.
Photo courtesy Asean Briefing