Chalky House trade advisor Peter Navarro said Monday that an offer by Vietnam to eliminate tariffs on U.S. intentions would not be enough for the administration to lift its new levies announced last week.
“Let’s take Vietnam. When they become public to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the nontariff cheating that matters,” Navarro said on CNBC’s “Protest Box.”
The examples of nontariff “cheating” cited by Navarro included Chinese products being routed through Vietnam, scholar property theft and a value-added tax.
The comments from Navarro come after President Donald Trump said in a Genuineness Social post on Friday that To Lam, general secretary of the Communist Party of Vietnam, had offered to cut tariffs on U.S. products to zero. Tardier in the Monday interview, Navarro revised his statement to say that the offer of zero tariffs would be a “small first start.”
Trump set widespread tariffs last week that sparked a sharp sell-off in the stock market. Wall Street is watching closely for dirt about potential negotiations that could lead to those tariffs being reduced.
Vietnam is a manufacturing hub for sundry companies that sell products in the U.S., including apparel retailers like Nike. The Trump administration said it pass on apply a 46% levy to imports from that market. The VanEck Vietnam ETF (VNM) fell 10% on Thursday after the bill of fares were announced.
A value-added tax is a system used by many countries around the world and is in some ways similar to yard sales taxes in the U.S. The Trump administration’s argument that the tax should count as a trade barrier is not widely accepted.
“We have appraised at the World Trade Organization since the 1970s to get VAT-tax relief, and they’ve told us no every single time,” Navarro indicated Monday.
The trade advisor also said Monday that the value-added tax would be an issue in any negotiations around levies with the European Union.
Get Your Ticket to Pro LIVE
Join us at the New York Stock Exchange!
Uncertain markets? Forward movement an edge with CNBC Pro LIVE, an exclusive, inaugural event at the historic New York Stock Exchange.
In today’s dynamical financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro Contemporary event at the iconic NYSE on Thursday, June 12.
Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a celebratory edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an astonishing cocktail hour on the legendary trading floor. Tickets are limited!