German Chancellor urges quick tariff resolution with U.S. to protect key industries
German Chancellor Friedrich Merz called on the European Union to resolve its tariff dispute with the United States swiftly to safeguard critical indus...
U.S. President Donald Trump has announced a reduced 20% tariff on many Vietnamese exports, down from a previously planned 46%, in what he described as a new trade framework with Hanoi.
Trump revealed the measure on Wednesday via his Truth Social platform following a call with Vietnamese President To Lam, calling it a “great honour” to reach a deal. The agreement comes ahead of a 9 July deadline for sweeping tariff hikes on imports from dozens of countries.
Under the revised terms, goods shipped directly from Vietnam to the U.S. would face a 20% tariff, while trans-shipped goods—products manufactured in third countries, notably China, and relabelled in Vietnam—would incur a 40% tariff. Vietnam, in turn, agreed to allow duty-free access for certain U.S. goods, including large-engine vehicles.
The Vietnamese government welcomed the agreement but did not confirm specific tariff figures. In a statement, Hanoi said it would provide preferential access to U.S. products and raised longstanding requests, including recognition as a market economy and the removal of restrictions on high-tech imports.
Trump’s administration had threatened significantly higher duties in a move aimed at correcting trade imbalances and curbing trans-shipment practices. U.S. imports from Vietnam surged nearly threefold from under $50 billion in 2018 to $137 billion in 2024, as companies shifted supply chains away from China. In contrast, U.S. exports to Vietnam rose only modestly, reaching more than $13 billion last year.
The deal is a political win for Trump, whose broader tariff strategy has met resistance from allies and trading partners. Similar limited-scope agreements were reached with the UK and China, while negotiations with Japan have reportedly stalled.
Trade adviser Dan Martin of Dezan Shira & Associates said enforcement of trans-shipment rules remains vague and politically sensitive. “How it's defined and applied in practice will shape the future of U.S.-Vietnam trade relations,” he said.
Vietnam's dependence on the U.S. as an export market—its largest—has grown amid deepening economic and strategic ties, which both countries view as a hedge against China’s regional influence. Analysts warned that imposing the originally planned 46% tariff could have damaged bilateral trust and weakened security cooperation.
Shares of major U.S. retailers and apparel companies with Vietnamese supply chains, including Nike, Under Armour and VF Corp, rose following the tariff announcement.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
A magnitude 5.5 earthquake struck off Japan’s Tokara Islands on Wednesday, with no tsunami warning issued but residents advised to remain vigilant.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
A British Royal Navy F-35 fighter jet that has remained grounded in southern India since mid-June may soon be dismantled and transported back to the UK by military transport, as repair efforts continue to stall, according to a report by India Today.
Finland has endorsed the European Union’s proposed 90% cut in greenhouse gas emissions by 2040, calling it a step toward climate neutrality and in line with its national goals, a key milestone on the EU’s path to climate neutrality by 2050.
The World Health Organization (WHO) has called for a 50% price increase on sugary drinks, alcohol, and tobacco over the next decade, pushing for taxation as a means to reduce chronic diseases and raise funds for health systems.
German Chancellor Friedrich Merz called on the European Union to resolve its tariff dispute with the United States swiftly to safeguard critical industries such as cars, steel, and pharmaceuticals.
The United States has designated Emi Karlon as its new chargé d'affaires in the Republic of Azerbaijan, marking the commencement of her diplomatic mission in Baku this week.
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