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U.S. President Donald Trump announced on Wednesday that the United States has secured tariff-free market access to Vietnam through a new trade agreement that also restructures tariffs on Vietnamese imports to the U.S.
The announcement comes just days before a self-imposed July 9 deadline when steeper tariffs were set to take effect on U.S. trade partners who had not reached deals.
According to Trump, the deal establishes a minimum 20% tariff on Vietnamese goods entering the United States. Additionally, a higher tariff of 40% will be applied to goods identified as “transshipping,” which refers to products routed through Vietnam to bypass existing US trade barriers. This measure is designed to prevent the rerouting of goods primarily originating from China.
In exchange, the United States will receive “total access” to Vietnam’s markets, meaning U.S. products will enter Vietnam without tariffs. Trump highlighted that U.S-made vehicles, especially SUVs, which have strong sales in the United States, are expected to become an important part of Vietnam’s product market.
The deal averts a threatened tariff rise from 10 to 46% on Vietnamese exports that was scheduled to take effect on July 9. The steep increase would have heavily impacted sectors such as footwear and clothing. Vietnam’s government confirmed the resolution of reciprocal tariff concerns but refrained from specifying exact terms, signaling continued cooperation on trade challenges.
This deal follows earlier agreements with the United Kingdom and China, which also involved tariff adjustments to ease tensions. The UK deal, for instance, reduced U.S. tariffs on British cars from 27.5% to 10%, with specific limits, and eliminated tariffs on engines and aircraft parts. In exchange, the UK opened its markets more broadly to US agricultural products.
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