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.
Thousands of Russians are hunting for apartments in Tbilisi and Yerevan - not because of a mobilisati...
Kremlin Spokesperson Dmitry Peskov has dismissed media reports that CIA Director John Ratcliffe visited Moscow ear...
Iranian President Masoud Pezeshkian has called for greater economic cooperation among Muslim countries, saying their combined economic weight remai...
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concerns over potential disruption to regional oil supplies.
Rescuers in Nepal used helicopters on Thursday to scour for hundreds still missing after a wall of mud and rock collapsed into a river on the Himalayan border with China's Tibet, sending catastrophic floods through towns and valleys, killing 162 people.
Secretary of State Marco Rubio told allied foreign ministers Washington will focus on sanctions and other pressure on Iran “for the time being”, Axios reports. Meanwhile, Iran and Oman have resumed talks on a temporary shipping route through the Strait of Hormuz.
Kyiv has recently received a small number of U.S.-made Patriot interceptors capable of downing Russian ballistic missiles, Ukrainian President Volodymyr Zelenskyy has said. It comes as Britain and France pledged stronger military support for Ukraine.
Iranian President Masoud Pezeshkian has called for greater economic cooperation among Muslim countries, saying their combined economic weight remains disproportionately small compared with their population, strategic location and resources.
Kremlin Spokesperson Dmitry Peskov has dismissed media reports that CIA Director John Ratcliffe visited Moscow earlier this week to warn Russia against attacking NATO, dismissing them as "scare stories," which had nothing to do with reality.
Thousands of Russians are hunting for apartments in Tbilisi and Yerevan - not because of a mobilisation order that's been signed, but because of one many fear is coming.
Poland has asked the European Commission to impose a €250 million ($291.3 million) fine on Meta, accusing the technology company of failing to adequately tackle fraudulent advertisements on its platforms.
Ratko Mladić, the former Bosnian Serb military commander convicted of genocide for his role in the 1995 Srebrenica massacre, has died, according to a United Nations official.
A glacial collapse that triggered catastrophic flooding along the Nepal-Tibet border on Wednesday has killed at least 270 people, with more than 1,000 still missing. Here are some of the most devastating glacier-related disasters recorded around the world:
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment