US President Donald Trump has announced a new trade deal with Vietnam that imposes a 20 percent tariff on Vietnamese exports to the country, significantly lower than previously proposed rates.
The agreement, disclosed on Wednesday, arrives just days before a July 9 deadline to conclude ongoing trade negotiations.
Under the newly unveiled framework, transshipments of goods from third countries through Vietnam will be subject to a higher 40 percent tariff.
In return, Vietnam has agreed to receive American goods duty-free, including select categories such as large-engine vehicles.
Trump revealed the agreement via Truth Social, stating, “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam,” following a conversation with Vietnamese President To Lam.
The deal marks a shift from Trump’s April proposal, which would have placed a 46 percent tariff on Vietnamese imports.
While Hanoi confirmed that a bilateral trade framework has been established, it did not officially endorse the tariff figures cited by Trump.
The Vietnamese government noted its commitment to offering preferential market access to American products.
Analysts believe the deal could provide Trump with a political win, as his administration struggles to finalize broader agreements with key economic partners ahead of the deadline.
Negotiations with India have been hinted at, and partial accords with the United Kingdom and China have been reached, though limited in scope. Talks with Japan—a close U.S. ally and sixth-largest trading partner—remain stalled.
Mary Lovely, senior fellow at the Peterson Institute for International Economics, observed, “Vietnam has been eager to escape heightened trade tensions. This arrangement puts pressure on smaller economies, but the real test lies in negotiations with larger players like the EU and Japan.”
Vietnam, which relies heavily on exports to the United States, has carefully balanced its relations with both Washington and Beijing amid strategic rivalry. Major U.S. brands such as Nike, Under Armour, and VF Corp saw share gains following the announcement.
In a statement, Vietnam said it had asked the U.S. to recognize it as a market economy and lift restrictions on high-tech exports—long-standing requests that remain unaddressed.
Requests for further comment from both the White House and Vietnam’s Ministry of Industry and Trade were not returned.
Source: AL Jazeera
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