Trump Eases Tariff Threat With Vietnam Trade Agreement

In a significant move days ahead of a major trade deadline, U.S. President Donald Trump has announced a bilateral trade deal with Vietnam, easing tensions with one of America’s top 10 trading partners.

Under the agreement, Vietnamese exports will face a reduced 20% tariff, down from the 46% Trump had initially threatened, while the U.S. will enjoy zero tariffs on its goods entering Vietnam.

A key part of the deal includes a steep 40% levy on any goods transshipped through Vietnam from other countries, targeting circumvention of U.S. tariffs, especially by Chinese exporters.

The announcement marks a political win for Trump’s administration, which has faced challenges finalizing broader deals with key partners like Japan and the European Union. Vietnam, whose exports to the U.S. have nearly tripled since 2018, remains strategically important both economically and diplomatically amid U.S.-China tensions.

The deal’s impact on sectors like automotive, apparel, and high-tech goods will be closely watched. For Vietnam, it’s also a step toward gaining recognition as a market economy.