Vietnam's $140 billion U.S. surplus isn't driven by illegal transshipment, says ex-ambassador Marc Knapper | Fortune

Former U.S. Ambassador to Vietnam Marc Knapper said Vietnam’s roughly $140 billion trade surplus with the United States is not primarily the product of illegal Chinese transshipment, pushing back on a central U.S. complaint as Washington weighs tariffs on the Southeast Asian manufacturing hub. Speaking at Fortune’s Southeast Asia 500 Summit, Knapper attributed the imbalance mainly to structural factors rather than goods rerouted through Vietnam to dodge U.S. duties on China. The distinction matters because a transshipment finding could expose Vietnamese exports to punitive levies, while a structural explanation points toward negotiations over market access and supply-chain rules. Investors should watch how the Office of the U.S. Trade Representative and Vietnamese trade officials frame the surplus in coming talks, and whether Hanoi offers concessions on tariffs, customs enforcement or purchases of U.S. goods.