US President Donald Trump announced a trade deal with Vietnam, aiming to renegotiate tariffs with dozens of countries worldwide. The agreement comes as the president’s self-imposed deadline for tariff negotiations is near.
Under the deal, tariffs on goods from Vietnam will be 20% and those shipped through Vietnam will be 40%. However, US businesses importing goods from Vietnam will pay the taxes, not Vietnam. In return, Vietnam agreed to “give the United States total access” to its markets, allowing for zero-tariff sales of US products, including SUVs.
The agreement builds on years of improved trade relations between the two countries since the US lifted its economic embargo in 1994. Trade has increased significantly, reaching $149.6 billion by 2024. The US is now Vietnam’s largest export market, accounting for nearly a third of its total exports.
However, concerns remain about the significant trade imbalance favoring Vietnam. The US trade deficit reached over $123.5 billion in 2024 and $39.1 billion in the first quarter of 2025. Officials are urging Vietnam to address non-trade barriers and further open its market to US goods and services.
Source: https://www.npr.org/2025/07/02/nx-s1-5422252/trump-trade-deal-vietnam-tariff