In a surprising move on Wednesday, former U.S. President Donald Trump announced a new trade deal with Vietnam just ahead of the July 9 deadline. The agreement is set to reshape trade relations between the two nations and could have significant impacts on global markets.
Under the deal, Vietnam will face a 20% tariff on its exports to the United States. Additionally, a 40% tariff will be imposed on “transshipping,” targeting products from other countries that are exported to the U.S. through Vietnam. U.S. Commerce Secretary Howard Lutnick explained, “If another country sells their content through products exported by Vietnam to us, they’ll get hit with a 40% tariff.”
On the other hand, Trump announced that U.S. products will gain total access to the Vietnamese market with zero tariffs. “Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” Trump shared on social media. “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that we will be able to sell our products into Vietnam at ZERO Tariff.”
Back in April, Trump had imposed a 46% duty on Vietnam as part of his “reciprocal tariffs” policy but reduced it to 10% to facilitate negotiations. The new agreement appears to be the culmination of these discussions, aiming to balance trade dynamics.
Vietnam exported nearly $137 billion worth of goods to the U.S. in 2024, making it the sixth-largest supplier of U.S. imports, according to Census Bureau data. The country is a major producer of textiles and sportswear, hosting factories for global brands like Nike, Gap, and Lululemon.
The deal could have far-reaching effects on industries reliant on Vietnamese imports and presents new opportunities for U.S. businesses in the Vietnamese market. Observers are keen to see how this development will influence global trade patterns.
