White House trade adviser Peter Navarro said on Monday that Vietnam’s proposal to lift tariffs on U.S. imports was not enough to get the government to announce its new tax last week.

Navarro in CNBC’s “,” when they come to us, let’s go to Vietnam. When they come to us ‘we’ll sign up for zero tariff’, it doesn’t make much sense to us because it’s irrelevant cheating.Squawk Box. ”

Examples of non-tariff “cheating” cited by Navarro include Chinese products routed through Vietnam, intellectual property theft and VAT.

Navarro’s comments are in the Truth Society Position On Friday, Vietnamese Communist Party Secretary-General Lam proposed to lower tariffs on U.S. products to zero. In an interview on Monday, Navarro revised his statement saying the zero tariff offer would be a “small first starting point.”

Trump announces Extensive tariffs Inspired last week Sharp selling In the stock market. Wall Street is closely following news about potential negotiations that could lead to these tariffs being lowered.

Vietnam is a manufacturing hub for many companies selling products in the United States, including clothing retailers Nike. Trump administration says it will apply Import tax 46% From that market. this Vaneck Vietnam ETF (VNM) Thursday fell 10% after the tariffs were announced.

VAT is a system used by many countries around the world, similar in some ways to the sales tax of the Trump administration in the United States, i.e. the Trump administration’s argument is that taxes should be regarded as a trade barrier.

“We have tried VAT relief in the World Trade Organization since the 1970s and they don’t tell us every time,” Navarro said on Monday.

The trade adviser also said on Monday that VAT would be a problem in any negotiations with EU tariffs.