Trump Announces Trade Deal With Vietnam, Imposes 20% Tariff On Imports

Former President Donald Trump announced Wednesday that the United States has reached a trade agreement with Vietnam, which includes a 20% tariff on Vietnamese imports and expanded access for American goods in the Vietnamese market.

The announcement came just days before Trump’s self-imposed July 9 deadline, after which steeper tariffs were set to take effect on trade partners that had not finalized new agreements.

Trump initially disclosed the deal without details, prompting a temporary surge in shares of clothing and sporting goods companies with manufacturing ties to Vietnam. However, stocks later fell sharply after the full terms—highlighting continued tariffs—were made public.

“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,” Trump posted on Truth Social.

Under what he called a “Great Deal of Cooperation,” all Vietnamese goods entering the U.S. will face a 20% tariff. Additionally, products transshipped through Vietnam from other countries will be subject to an even steeper 40% tariff—a move aimed at cracking down on circumvention of trade duties.

In exchange, Vietnam will reportedly open its market completely to U.S. exports. Trump claimed the deal gives the United States “TOTAL ACCESS” to Vietnamese markets, allowing U.S. goods to enter at zero tariffs.

“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,” he said, adding that American-made SUVs would be a strong fit for the Vietnamese market.

This agreement is part of Trump’s broader effort to renegotiate trade terms he considers unfair. The administration had previously imposed a temporary 10% tariff in April on several trading partners, citing a lack of “reciprocity.” Vietnam’s tariff would have risen to 46% without a deal.

So far, the U.S. has also reached agreements with the United Kingdom and China, both of which allow for some of Trump’s original tariffs to remain in place while avoiding further escalation.

With the July 9 deadline approaching, other major economies, including the European Union and Japan, are still negotiating to avoid the looming tariffs.

—AFP