First Major Country Blinks, Offers To Eliminate All Tariffs On US Goods

President Donald Trump announced on Friday morning that Vietnam’s top leader, To Lam, has expressed a willingness to eliminate tariffs entirely in order to avoid the impact of new U.S. duties imposed on Vietnamese imports. Trump shared details of what he described as a “very productive” phone call, saying To Lam indicated Vietnam would cut tariffs to zero if a trade agreement could be reached. The announcement immediately drew attention from markets and policymakers alike, signaling a potential shift in trade relations between the two countries at a time of heightened economic uncertainty.

Trump revealed the conversation through a social media post, emphasizing both the tone and substance of the discussion. He wrote that he thanked To Lam on behalf of the United States and expressed interest in meeting in the near future to continue talks. The remarks came just days after the Trump administration imposed steep tariffs of 46 percent on Vietnamese goods, a move that raised concerns among companies with significant manufacturing operations in Vietnam. The suggestion that Vietnam might respond by eliminating its own tariffs introduced a new dynamic into ongoing trade negotiations.

Financial markets reacted quickly to the news. Stocks of companies that rely on Vietnam for manufacturing rose sharply, reflecting optimism that trade tensions could ease. Nike, which produces a significant portion of its goods in Vietnam, saw its shares jump more than four percent following reports of the call. Investors appeared encouraged by the possibility that tariffs could be reduced or avoided altogether, potentially lowering costs for companies and consumers while stabilizing supply chains disrupted by recent trade actions.

The trade news coincided with fresh economic data showing continued strength in the U.S. labor market. The Labor Department reported that employers added 228,000 jobs in March, well above the 135,000 economists had expected. Although the unemployment rate edged up slightly to 4.2 percent, job growth accelerated compared to previous months. Revisions to January and February figures lowered earlier job estimates, but overall hiring momentum remained strong, reinforcing perceptions of a resilient economy.

Job gains were broad-based across multiple sectors. The private sector accounted for most of the growth, adding 209,000 jobs, far exceeding forecasts. Healthcare continued its steady expansion, while social assistance, retail, and transportation also posted notable increases. Government employment rose modestly, even as federal jobs declined for a second month. Manufacturing saw minimal growth, adding fewer jobs than anticipated, suggesting mixed conditions in that sector despite overall economic strength.

Economists cautioned that the strong March report reflects past conditions and may not fully capture the effects of new tariffs. Still, many believe the data gives the Federal Reserve room to hold interest rates steady as it monitors inflation risks. Oxford Finance economist Nancy Vanden Houten noted that tariffs could push inflation closer to four percent this year. Administration officials and supporters praised the report, with Labor Secretary Lori Chavez-Deremer calling the results a clear sign that businesses are responding positively to Trump’s economic policies.

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