US-Vietnam trade deal: Trump announces 20% import tariff, market access

Donald Trump has announced a trade deal with Vietnam imposing tariffs on imports and transshipping, while granting the US full market access and zero tariffs on American goods

US President Donald Trump has confirmed a new trade agreement between the United States (US) and Vietnam, under which a 20 per cent tariff will be imposed on Vietnamese goods entering the US.

 

Trump made the announcement on Truth Social. He said that the agreement also includes tariff-free access for American products into Vietnamese markets.

 

As part of the deal, Vietnam has agreed to a 40 per cent tariff on any goods that are brought into the country from elsewhere and then shipped to the US. This practice, known as transshipping, is often used to avoid existing trade restrictions. Notably, media reports have highlighted concerns that China has used Vietnam as a transshipment point for goods destined for the US.

 

Great deal of cooperation: Trump

In his post, Trump said: “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries.” 

 

He continued: “The Terms are that Vietnam will pay the United States a 20 per cent Tariff on any and all goods sent into our Territory, and a 40 per cent Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff.”

 

Trump also added: “It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!”

'Just in time' deal

The deal comes just days before a 90-day suspension on Trump’s reciprocal tariffs is set to end. Once expired, those tariffs would have increased duties on imports from dozens of countries.

 

Previously, Vietnamese goods entering the US faced a flat 46 per cent tariff under the Trimp administration’s "reciprocal" measures.