Vietnam is the United States’ 10th biggest trading partner, and an increasingly important manufacturer of goods globally.
It was one of the nations facing higher tariffs when its goods go into the States, ahead of the July 9 deadline where US President Donald Trump is pledging to bump up tariffs again.
Under that plan announced in April, US importers of Vietnamese goods would have had to pay a 46% tariff.
Now there is news of a deal between the US and Vietnam, which lowers tariffs to 20% (with some fineprint).
The US will place a lower-than-promised 20% tariff on many Vietnamese exports, Trump said on Wednesday, cooling tensions with its tenth-biggest trading partner days before the U.S. president could raise levies on most imports.
Vietnamese goods will now face a 20% tariff and any trans-shipments from third countries through Vietnam will face a 40% levy, he said. Vietnam would accept US products with a zero percent tariff, he added.
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam,” Trump said on Truth Social after speaking with Vietnam’s top leader, To Lam.
Trump’s announcement comes just days before a July 9 deadline he set to resolve negotiations before he ramps up tariffs on most imports, one of the Republican’s signature economic policies.
Under that plan announced in April, U.S. importers of Vietnamese goods would have had to pay a 46% tariff.
Details were scarce, and it was not immediately clear how any trans-shipment provision aimed at products largely made in China and then finished in Vietnam would be implemented.
The Vietnamese government said in a statement that the two countries agreed on a joint statement about a trade framework. It did not confirm the specific tariff levels mentioned by Trump.
Vietnam would commit to “providing preferential market access for US goods, including large-engine cars,” the government in Hanoi said.
