President Trump announces new trade deal between the U.S. and Vietnam
By Easton Martin | July 2, 2025
President Trump announced a new trade agreement between the United States and Vietnam on Wednesday, just days before a steep tariff increase was set to take effect on July 9.
The deal imposes a 20 percent tariff on all Vietnamese imports to the U.S., down from the originally proposed 46 percent under Trump’s “Liberation Day” tariff plan launched in April. In return, Vietnam has granted the United States full duty-free access to its domestic markets.
A key feature of the agreement is a 40 percent tariff on goods transshipped through Vietnam. This provision targets Chinese products that are rerouted to avoid U.S. tariffs. Trump called the deal “a great step forward for fair trade,” noting that Vietnam has pledged to help enforce anti-circumvention measures.
Vietnam had been under pressure to secure a deal, with the U.S. accounting for nearly 30 percent of its total exports. In 2024, the U.S. imported roughly 136.6 billion dollars in goods from Vietnam while exporting only 13.1 billion dollars. The new agreement is expected to stabilize the relationship while reducing Vietnam’s trade surplus.
The agreement follows a 90-day tariff moratorium and a phone call between Trump and Tô Lâm, General Secretary of Vietnam’s Communist Party. While the framework is in place, full implementation details are still pending, including enforcement mechanisms and the timeline for market access.
Critics say the shifting tariff landscape under Trump’s trade strategy could unsettle global supply chains, but supporters argue the deal protects U.S. manufacturers and farmers. Reports suggest Vietnam may commit to purchasing billions in American agricultural goods, though specifics remain unconfirmed.
This marks Trump’s third major trade action in recent months, following deals with the United Kingdom and revised tariffs on China.
