On July 2, 2025, former President Donald Trump revealed a new trade framework with Vietnam:
Tariffs on Vietnamese exports to the U.S.
20% tariff on standard Vietnamese products
40% tariff on “trans-shipment” goods rerouted through Vietnam to evade U.S. tariffs
U.S. exports to Vietnam
Vietnam will grant full market access to U.S. goods—entering duty-free—including “large-engine vehicles” like SUVs
The agreement comes just before the July 9 deadline, when Trump’s planned reciprocal tariffs would rise to 46% on countries without pending agreements
Purpose of the framework: To deter China-origin goods from infiltrating U.S. markets via Vietnam and to strengthen American exports—especially in autos, aircraft, and industrial sectors
📈 Market & Economic Implications
Mixed investor reaction: Stocks surged after the announcement—Nike gained—but later pulled back as the higher-than-anticipated 20% tariffs dawned on markets
Competitive positioning:
Vietnam remains an appealing low-cost manufacturing base—but the new deal limits advantages gained from redirecting Chinese goods .
For U.S. exporters, zero-duty access is a win—though actual implementation details on product coverage and enforcement (trans-shipment rules, rules of origin) remain unresolved
Geopolitical ripple: Seen as part of a broader strategy by Trump’s team to pressure other trade partners (India, EU, Japan, UK, and China) into similarly tailored deals under the looming tariff deadline
🌏 Vietnam’s Response
Vietnam has confirmed reaching an agreement on a joint tariff framework but has not publicly released the full terms.Hanoi is also reportedly pushing the U.S. to:
Recognize Vietnam as a market economy
Ease restrictions on high-tech exports
✅ Takeaway
This “deal” is a preliminary framework rather than a finalized treaty. It offers U.S. producers zero-duty access to Vietnam but imposes new tariffs on Vietnamese goods entering the U.S., particularly targeting trans-shipment routes. It sets a template for similar deals and is intended to reshape supply chain flows while aligning with Trump’s tariff agenda ahead of future negotiations.
