US President Donald Trump announced a new trade deal with Vietnam, which includes a 20% tariff on Vietnamese goods entering the US and a higher 40% “transshipping” tariff. The agreement comes as a 90-day pause on many of Trump’s reciprocal tariffs is set to expire.
The terms of the deal are that Vietnam will pay a 20% tariff on any and all goods sent into the United States, while also paying a 40% tariff on any transshipping goods. In return, the US will have access to Vietnam’s markets with zero tariff. The deal does not specify when it will take effect or if it has been officially signed by both parties.
Critics warn that Trump’s tariffs create economic uncertainty and may lead to higher prices for consumers. The administration counters that tariffs do not cause inflation and have brought in billions of dollars to the US government.
The new tariff rates on Vietnamese goods will hike costs for US importers, which could be passed on to consumers or suppliers. However, some analysts believe the lack of a widespread impact on US prices so far may be due to pre-tariff stockpiling by companies and the time it takes for those tariffs to show up in the economy.
The news comes as the S&P 500 rose slightly on the announcement, but it is unclear how this will affect Vietnam’s exports to the US. The country’s exports account for about 30% of its gross domestic product last year.
Source: https://www.cnbc.com/2025/07/02/trump-trade-vietnam-deal.html