The United States will impose a reduced 20% tariff on many Vietnamese exports less than the previously proposed 46%, as former President Donald Trump announced a new trade agreement with Vietnam just days before a broader tariff hike deadline.
Trump announced on Truth Social following a conversation with Vietnamese President To Lam, saying the deal marks a “Great Honour” and includes zero tariffs on some U.S. goods exported to Vietnam. Meanwhile, goods transshipped through Vietnam from third countriesparticularly China, will face a 40% levy.
The move comes as Trump prepares for a July 9 deadline to raise tariffs on a wide range of imports under his “America First” economic policy. The exact product categories covered by the new Vietnam tariffs have yet to be detailed, and implementation of the anti-transhipment provisions remains unclear.
Vietnamese officials confirmed the deal only as a framework agreement and highlighted their commitment to giving preferential market access to U.S. goods, including large-engine vehicles. Hanoi also pushed for the U.S. to recognise Vietnam as a market economy and lift restrictions on high-tech exports, longstanding requests in bilateral trade talks.
The U.S. is Vietnam’s largest export destination. Since 2018, Vietnam’s exports to the U.S. have nearly tripled, largely due to U.S. tariffs on Chinese goods that rerouted supply chains through Southeast Asia.
Markets reacted positively to the announcement, with shares in major apparel and footwear brands like Nike, Under Armour, and VF Corp rising on the news.
Though the agreement mirrors recent trade deals with Britain and China—more framework than final pact—it gives Trump a diplomatic and economic win as multiple nations negotiate to avoid stiffer tariffs ahead of the looming deadline.
reuters/s.s