Was a $1.5 billion Trump family golf project the price paid by Vietnam to get 46% tariff reduced to 20% and a trade deal? Displaced farmers, meagre compensation and ‘conflict of interest’
The sweeping new tariffs imposed by the United States president Donald Trump on over 90 nations recently came into effect. The general goal of his trade policies has been to change the international trading system, which he believes unfairly treats his country.
Trump initially engaged in a significant tariff battle with China, the world’s second-largest economy which was later resolved and has now trained the gun on India. He has threatened to increase the tariff on imports from the country to 50% unless it ceases its purchases of Russian oil.
As New Delhi maintained a strong position and has not yielded to the bullying, other nations identified their own strategies to counteract the tariff threat enforced by the megalomaniac president.
Likewise, the “Liberation Day” plan for worldwide tariffs unveiled by Trump on 2nd April was supposed to strike Vietnam with some of the highest tariff rates of any nation, at 46%. However, the levies were reduced to 20% later and the news coincided with the approval of an extravagant Trump family golf course in the Southeast Asian country.
Trump family’s golf resort in Vietnam gets fast-tracked while Vietnam gets tariffs reduced from 46% to 20%
A grand Trump golf resort is going to open in Vietnam and the construction is set to start next month, reported Reuters. Eric Trump and Vietnamese prime minister Pham Minh Chinh held the groundbreaking ceremony for the $1.5 billion luxury residential development outside of Hanoi that includes three 18-hole golf courses, in May.
Chinh declared that Eric Trump’s visit “motivated us to expedite this project” as he called on local authorities to assist in completing the 990-hectare (2,446-acre) resort by the end of 2027 and lauded it as a move to strengthen ties with the Western power.
The project is the first collaboration for Trump’s family business in Vietnam. It breezed through expedited permissions while, interestingly, Vietnam was negotiating a significant trade deal with Washington. According to regulatory filings and a source familiar with the agreement, the Vietnamese real estate company Kinhbac City and its partners will build the upscale club after giving $5 million to the Trump Organisation for brand licensing rights.
Screenshot from a report on the Groundbreaking ceremony for the luxury real estate project in Vietnam
Once completed, the property will be operated by Trump’s family business. The White House has denied any conflict of interest. Notably, Trump has claimed that his children are in charge of managing the trust that holds his commercial interests but revelations made in June revealed that the Donald Trump is primary recipient of the money received from those sources, as per reports.
The Trump family organisation will take over the project after its completion. It is not involved in the reclamation, compensation and construction part of the project.
The New York Times reported that the project was approved ‘unusually quickly’ and without completion of many steps, including environmental reviews.
Farmers displaced, left with meagre compensation for their land taken for Trump company’s project
Meanwhile, the farmers who have been living and working on the land have been instructed to leave their land with only $3,200 and provisions for rice in exchange. Six persons with direct knowledge of the development and documents disclosed that the establishment has offered similar compensation packages to several locals to persuade them to leave the land that has supported their livelihood for multiple years.
Currently, fruit farms cultivating longan, bananas and other crops occupy the 990-hectare plot of land designated for the golf course. Many farmers are elderly and hence concerned that they will have a difficult time finding other sources of income in Vietnam’s economy which is dominated by young people. They fear that their land will be seized, leaving them unemployed.
A person familiar with the plans unveiled that developers are currently reducing expectations of compensation from an initial estimate of more than $500 million. The Trump family business is not engaged in the investment or payments to farmers.
Final compensation rates will be decided by authorities based on the location and size of the land and the official approval is anticipated the following month. Reuters reported that five farmers who were facing evictions had received compensation between $12 to $30 per square metre of farmland and were offered extra money for plants that were uprooted along with rice for a few months.
On the other hand, farmers expressed their dissatisfaction with the suggested rates due to the meagre compensation their small plots would yield. Moreover, a second letter from local officials noted that final payment decisions would be taken next month, affecting thousands of residents.
The state controls all land in the Communist nation. Small pieces of land are distributed among farmers for long-term usage but they have little control over when the government decides to reclaim the area. The state pays compensation but developers bear the expense.
Pham Minh Chinh spoke at the groundbreaking ceremony in May and promised that farmers would receive reasonable compensation. However, the farmers conveyed their discontent with the inability to negotiate as protests are also ineffective in the country.
No compromise of the interest of the farmers: PM Modi says on India’s trade deal talks with the US govt
“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know we will have to pay a heavy price for it and I am ready for it. India is ready for it,” Prime Minister Narendra Modi firmly retaliated to the outrageous tariffs imposed by Trump under the guise of halting New Delhi’s energy supply from Moscow, and the delayed trade deal discussions that are yet to be finalised.
Trump justified the increase by citing national security and foreign policy issues, along with other pertinent trade laws, according to the White House order. He claimed that India’s imports of Russian oil, whether directly or indirectly, represent a “unusual and extraordinary threat” to the United States.
India already clarified that imports are determined by market conditions and carried out with the ultimate goal of guaranteeing the energy security of the country’s 1.4 billion citizens. The government emphasised that the country would do whatever it takes to safeguard its interests.
The Modi government previously challenged the hypocrisy of the United States and the European Union. It pointed out how the two continue to trade with Moscow, even for non-essential goods and yet attack New Delhi which has only contributed to the stability of the world’s energy supply by buying the oil, after Trump’s first 25% tariffs.
An official informed that the government would not permit concessions on issues involving religious sensitivities, such as non-vegetarian milk and beef products. The Modi administration has taken a strong stance against opening up Indian dairy and agricultural markets to the United States and refused to lower tariffs on these critical sectors.
Opening Indian dairy and agricultural markets to the United States will negatively affect the livelihoods of millions of Indian farmers. Hence, the country has refrained from including agriculture in trade agreements. However, a persistent Washington is only concerned with maximising profits from one of the biggest marketplaces in the world.
It is noteworthy, the unwarranted altercation intended to intimidate India into compliance has emerged at a time of unparalleled proximity to the terrorist state of Islamabad.
Qatar’s $400 million gift to Trump
Donald Trump is known for his tendency towards lavish praise and extravagant gifts. The US Department of Defence in May received a $400 million luxury Boeing 747-8 from the Qatari royal family to be utilised as part of the Air Force One fleet.
The new aircraft, which would take years and millions of dollars to renovate and upgrade before its induction, will be placed into Trump’s presidential library after the conclusion of his term, according to the White House. Meaning, he will be able to use it even after leaving the position of POTUS.
Predictably, there was an instant and severe pushback as the news was released. “The United States should have the most impressive plane compared to the planes used by the leaders of other countries,” Trump remarked in defence of his decision. He described his current Air Force One as “much smaller” and “much less impressive.” However, questions were raised about the aircraft’s technical safety and security while Trump was also charged with corruption.
Senate Minority Leader Chuck Schumer stated that he will halt the confirmation of all Justice Department nominees pending Senate approval until the White House releases all the information regarding the special present. He also pressed Attorney General Pam Bondi to testify about the agreement before Congress.
“There will be plenty of scrutiny. There are lots and lots of issues around that, that I think will attract very serious questions,” asserted the Republican Senate Majority Leader John Thune of South Dakota. “The plane poses significant espionage and surveillance problems, so we’ll see how this issue plays out,” voiced Republican Senate Commerce Committee Chair Ted Cruz.
Trump, in an unprecedented move, managed to unite both Republicans and Democrats who voiced their criticism over the pricey gift and raised suspicions about it.
Trump’s tariffs: A ploy to arm twist countries
Trump recently announced that his import tariffs were bringing billions of dollars into the country. He also threatened to impose a 100% tariff on computer chips manufactured abroad. He set a patchwork of tariffs for various nations and changed them over time.
He ultimately chose August as the deadline for negotiations. A number of other industry-specific duties that impact goods like steel and automobiles have caused the average US tariff rate to reach its highest level in over a century.
South East Asian countries that rely heavily on exports were among the most severely affected. Laos and Myanmar, which are primarily focused on manufacturing, encounter some of the highest tariffs at 40%. Trump also issued further tariffs targeting the US’s top three trading partners (China, Canada, and Mexico) after he returned to the White House in January.
He clearly sought to present himself as a strong leader capable of influencing global politics on his own terms through the use of tariffs. Trump also desires geopolitical leverage over Russia to ensure that President Vladimir Putin regards him with a bit more seriousness. Additionally, he intends to coerce nations into complying with his demands.
This is one of the factors contributing to his severe stance towards India, particularly in light of New Delhi’s outright rejection of his claims regarding mediation during “Operation Sindoor.” Trump sought gratitude similar to what Islamabad demonstrated, however, India refuted his assertions which he apparently found unacceptable.
He wants to seen as a global peacemaker and is equally desperate for the Noble peace prize. Moreover, some countries including Pakistan nominated him for the same. India has not entertained any such expectations.
Trump is clearly using the tariffs to impose his will on the nations. It was also admitted by his officials after the move was blocked by a US court.
The court at that time revealed that an emergency law implemented by the White House does not provide Trump with the exclusive power to impose tariffs on nearly all countries. The three-judge panel ruled that Trump had overstepped his authority in defending the sweeping tariffs and declaring a national emergency under the 1977 International Emergency Economic Powers Act. The White House was further accused of acting “contrary to law.”
In the meantime, the government’s attorneys argued that the tariffs triggered international negotiations and any legal restrictions would significantly reduce the country’s global influence. “An injunction would completely kneecap the president,” submitted Justice Department lawyer Brett Shumate, indicating their critical importance for Trump in order to manipulate countries in international diplomacy.
Conclusion
Trump is evidently using tariffs to further his personal and political interests. The golf course in Vietnam and a Nobel Prize nomination from Pakistan are clear signs of this. India would have been free from his high tariff threats as well, had the Modi government capitulated, which they did not, instead opting to show fortitude which has further infuriated Trump.
The tariffs are being wielded as incentives and punishments to reward or penalize countries according to Trump’s whims and desires.
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