US 20% tariff 'startles Vietnam'

Before two leaders spoke Wednesday, Hanoi pushed for 10%-15% levy: sources

- FRANCESCA STEVENS JOSH WINGROVE NGUYEN DIEU TU UYEN

Vietnam's leadership was caught off guard by US President Donald Trump's announcement last week that it agreed to a 20% tariff, and the Southeast Asian nation is still seeking to lower the rate, according to people familiar with the matter.

Straight after last Wednesday's call with Trump, Vietnam's party chief To Lam told his negotiating team to keep working to bring the tariff rate down, the people said, asking not to be identified as the talks are confidential. The 20% came as a surprise as Vietnam believed it had secured a more favorable tariff range, the people said.

Before the call, Vietnam had been pushing for a tariff in the 10%-15% range.

There’s been little mention of the 20% tariff in Vietnam's state media. In a government memo seen by Bloomberg News, which was sent to local press, it gives instructions not to post content that is unclear or speculative in nature and without consensus between Vietnam and the US.

Vietnam's Ministry of Foreign Affairs didn’t immediately respond to a request for comment.

The Southeast Asian nation, an export powerhouse that last year had the world’s third-biggest trade surplus with the US, was only the second country after the UK that Trump has announced a trade agreement with.