Close
newsletters Newsletters
X Instagram Youtube

US gains tariff-free market access to Vietnam in trade deal lowering tariffs

U.S. President Donald Trump displays a signed executive order imposing tariffs on imported goods during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House in Washington, DC, on April 2, 2025. (AFP Photo)
Photo
BigPhoto
U.S. President Donald Trump displays a signed executive order imposing tariffs on imported goods during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House in Washington, DC, on April 2, 2025. (AFP Photo)
July 02, 2025 08:26 PM GMT+03:00

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.

New tariffs set for Vietnamese imports, focus on transshipping

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.

Workers stitch apparels at a garment factory in Vietnam's Thai Nguyen Province on July 2, 2025. Vietnam, a global manufacturing hub dependent on exports, faces a potential "reciprocal tariff" hike from 10 to 46 percent without a US trade deal. (AFP Photo)
Workers stitch apparels at a garment factory in Vietnam's Thai Nguyen Province on July 2, 2025. Vietnam, a global manufacturing hub dependent on exports, faces a potential "reciprocal tariff" hike from 10 to 46 percent without a US trade deal. (AFP Photo)

Vietnam avoids planned 46% tariff

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.

July 02, 2025 08:26 PM GMT+03:00
More From Türkiye Today