Vietnam to face 20% tariff beneath new US commerce deal: Trump
President Donald Trump introduced Wednesday that the US has reached a brand new commerce take care of Vietnam, imposing a 20 % tariff on Vietnamese exports to the US and marking the third main commerce settlement secured by his administration forward of a essential self-imposed July 9 deadline. The deal introduces one of many highest tariff charges lately as international commerce stays in flux and the US prepares to reinstate sweeping “reciprocal” tariffs.
In a publish on Fact Social, Trump mentioned, “I simply made a Commerce Take care of Vietnam,” including that Vietnamese exports to the US will now face a 20 % tariff, whereas items transshipped by means of Vietnam—merchandise from different nations rerouted by way of Vietnam, can be hit with a steep 40 % tariff.
US Commerce Secretary Howard Lutnick clarified on X that the 40 per cent price applies to overseas merchandise routed by means of Vietnam in an try to bypass present tariffs.
Trump emphasised that in change for the brand new tariffs, Vietnam has agreed to open its markets to US exports at zero tariffs, giving American companies what he referred to as “TOTAL ACCESS” for the primary time. He pointed to SUVs for instance of products that may profit from expanded entry to Vietnam’s client base.
Nevertheless, the Vietnamese authorities has not but confirmed the phrases of the settlement as described by Trump. Vietnam’s state-run information outlet Vit Nam Information reported that Normal Secretary T Lm and Trump held a cellphone name to debate the framework of the deal. In the course of the name, Lm reportedly requested the US recognise Vietnam as a market financial system and carry restrictions on the export of high-tech items.
Deputy Treasury Secretary Michael Faulkender informed CNBC {that a} formal press launch outlining the settlement’s particulars was nonetheless within the works and anticipated by the top of the buying and selling day. He didn’t make clear whether or not the 20 per cent tariff replaces the present 10 per cent or is along with it.
US-VIETNAM TRADE RELATIONS
For the reason that US lifted its embargo in 1994 and normalised diplomatic ties a 12 months later, Vietnam has quickly emerged as a key buying and selling associate. By 2024, the US had develop into Vietnam’s largest export market, with bilateral commerce reaching USD 149.6 billion.
Pushed by tariffs on Chinese language items throughout Trump’s first time period, US corporations more and more turned to Vietnam as a sourcing hub. Imports of electronics, attire, and furnishings from Vietnam surged as corporations regarded to diversify provide chains away from China.
Nevertheless, the rising commerce imbalance has raised crimson flags in Washington. In 2024, the US posted a USD 123.5 billion commerce deficit with Vietnam, the third-largest globally, a determine that surged by one other USD 39.1 billion in simply the primary quarter of 2025.
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