Trump Announces Trade Deal with Vietnam to Avoid High Tariffs
Former U.S. President Donald Trump said he has made a new trade deal with Vietnam. Under this deal:
Vietnamese products will face a 20% tax (tariff) when entering the U.S.
Goods sent through Vietnam from other countries (especially China) will face a 40% tax.
In return, Vietnam will be able to import U.S. products without any tax.
Trump announced the deal on his social media platform, Truth Social, after talking to Vietnam’s President To Lam. This announcement came just before a July 9 deadline, when Trump is expected to raise taxes on many imported products—a key part of his economic policy.
Earlier, Trump had planned a 46% tax on Vietnamese imports. Now, it’s reduced to 20%. However, he did not explain which specific products will get this new tax, or how the 40% tax on trans-shipped goods will be enforced.
The Vietnamese government did not confirm the exact tax rates but said it agreed to give special access to U.S. products, including large cars.
This deal is a win for Trump, who has been trying to make new trade deals before the July 9 deadline. Talks with countries like Japan have faced difficulties, and earlier agreements with the UK and China were only small steps.
The U.S. is Vietnam’s biggest export market. Their growing relationship in trade, politics, and defense helps Vietnam balance its ties with both the U.S. and China.
Stocks of big American clothing companies like Nike and Under Armour went up after the news.
Vietnam also asked the U.S. to recognize it as a market economy and to remove limits on high-tech exports—something Vietnam has wanted for a long time.
Background on U.S.–Vietnam Trade
Since Trump placed heavy taxes on Chinese goods in 2018, many companies shifted production to Vietnam. As a result, Vietnam’s exports to the U.S. jumped from less than $50 billion in 2018 to about $137 billion in 2024. However, U.S. exports to Vietnam only grew slightly—from under $10 billion to just over $13 billion.
Experts say the rules around “transshipping” (sending Chinese goods through Vietnam to avoid tariffs) are not very clear and could affect future trade between the two countries.
Trump had announced tariffs on many countries back in April, but gave them until July 9 to make deals. More than a dozen countries are still negotiating.
The UK, for example, accepted a 10% U.S. tax on many goods but got special access for its engines and beef in return.
Just like the deal with the UK, the Vietnam deal is more of a basic agreement rather than a full trade treaty.
If Trump had gone ahead with the 46% tariff, Vietnam could have lost business to other Southeast Asian countries. That would have hurt its trust in the U.S. and possibly affected its military cooperation with Washington.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.