President Donald Trump’s announcement on Friday morning that Vietnam’s top leader, To Lam, is willing to eliminate tariffs entirely marked a notable moment in the administration’s evolving trade strategy. According to Trump, the Vietnamese leader conveyed a readiness to cut tariffs to zero if an agreement with the United States can be reached, a move aimed at avoiding the economic impact of newly imposed U.S. duties on Vietnamese imports. The statement immediately drew widespread attention because it suggested a potential de-escalation of trade tensions at a time when tariffs have become a central tool of U.S. economic policy. Trump framed the development as a diplomatic and economic win, emphasizing cooperation rather than confrontation, while underscoring his administration’s willingness to use tariffs as leverage in negotiations.
Trump shared details of the call through social media, describing it as highly productive and forward-looking. He said he thanked To Lam on behalf of the United States and expressed anticipation for a face-to-face meeting in the near future, signaling that further talks could soon follow. This outreach came shortly after the Trump administration imposed tariffs of 46 percent on Vietnamese goods earlier in the week, a move that sent shockwaves through industries reliant on Vietnam as a manufacturing hub. Vietnam has become increasingly important to global supply chains, particularly as companies diversify production away from China. Trump’s comments suggested that the administration’s aggressive tariff stance may be designed not only to protect domestic industries but also to compel trading partners to make significant concessions.
The financial markets responded almost immediately to the news, highlighting how sensitive investors remain to trade developments. Shares of companies with manufacturing operations in Vietnam rose as traders anticipated the possibility of reduced trade barriers and lower costs. Nike, one of the most prominent examples, saw its stock climb more than four percent following reports of the call. The reaction reflected investor optimism that a potential agreement could stabilize supply chains and protect profit margins. The Wall Street Journal reported that the prospect of Vietnam eliminating tariffs eased concerns that U.S. companies would face sustained higher costs due to retaliatory trade measures.
This trade development unfolded alongside new data showing continued strength in the U.S. economy, particularly in the labor market. According to the Labor Department, employers added 228,000 jobs in March, significantly surpassing economists’ expectations of 135,000. The pace of job creation accelerated compared to the previous month, reinforcing the narrative that the economy remains resilient despite uncertainty surrounding trade and inflation. The unemployment rate rose slightly to 4.2 percent, higher than both the previous month and forecasts, but economists generally viewed the increase as modest given the strong hiring numbers. Revisions to January and February employment figures reduced previously reported gains by a combined 48,000 jobs, yet overall momentum remained solid.
A closer look at the March employment report revealed robust growth across much of the private sector. Private employers added 209,000 jobs, far exceeding expectations and accounting for the vast majority of overall gains. Government employment increased by 19,000 jobs, although federal employment declined by 4,000 in March following an 11,000-job drop in January. The Bureau of Labor Statistics noted that workers on paid leave or receiving severance are still counted as employed, which partially explains the federal figures. Manufacturing added just 1,000 jobs, falling short of expectations and highlighting ongoing challenges in that sector amid global trade shifts and automation.
Healthcare remained a consistent source of job growth, adding 53,600 positions in March, closely matching its average monthly gain over the past year. Hospitals, nursing and residential care facilities, and ambulatory healthcare services all posted solid increases, reflecting sustained demand driven by an aging population and ongoing healthcare needs. Social assistance also saw a sharp rise, with roughly 24,200 new jobs added, marking one of the strongest months for the sector in the past year. Retail employment increased by 23,700 jobs, boosted in part by workers returning from a strike at food and beverage retailers, while general merchandise retailers continued to shed jobs, underscoring uneven conditions within the sector.
Transportation and storage experienced a notable surge, adding 22,900 jobs in March, nearly double the average monthly gain of the previous year. Growth in couriers, messengers, and truck transportation drove much of the increase, although losses in storage and warehousing partially offset those gains. The labor force participation rate held steady at 62.5 percent, showing little change over the month or year. Economists emphasized that while the March report reflects conditions before the full impact of recent tariffs, it provides the Federal Reserve with flexibility to keep interest rates on hold. Oxford Finance economist Nancy Vanden Houten noted that while hiring remains strong, tariffs are expected to push inflation close to four percent this year. Administration officials and allies praised the report, with Labor Secretary Lori Chavez-Deremer calling the results proof that businesses are responding positively to Trump’s economic agenda and trade approach.
