The United States Trade Representative (USTR) is not moving forward with tariffs on Vietnamese imports. The USTR’s formal determination in the Vietnam Currency Section 301 investigation reflects the agreement reached last week between the Department of the Treasury and the State Bank of Vietnam (SBV) that provides a satisfactory resolution of the matter subject to investigation and accordingly that no trade action is warranted at this time. USTR, in coordination with the Treasury, will monitor Vietnam’s implementation going forward.

“I commend Vietnam for its commitment to addressing U.S. concerns with its currency practices and setting an important example for the Indo-Pacific region,” says United States Trade Representative Katherine Tai. “American workers and businesses are stronger when our partners value their currency fairly and compete on a level playing field. Going forward, in coordination with Treasury, we will work together with Vietnam to ensure implementation, and we will continue to examine the currency practices of other major trading partners.”

The Federal Register notice summarizing the determination is available here.

The USTR investigation was initiated in October 2020 under Section 301 of the Trade Act of 1974. On January 15, 2021, USTR issued a determination that Vietnam’s acts, policies and practices, including excessive and one-sided intervention in the foreign exchange markets and other related actions, taken in their totality, are unreasonable and burden or restrict U.S. commerce.