Trump Secures Historic Vietnam Trade Deal, Gains Market Access/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump announced a new trade deal granting the U.S. full market access in Vietnam. In exchange, Vietnam agrees to tariffs on exports to the U.S. The agreement aims to reduce trade imbalances and counter transshipment concerns.
Quick Look
- Trump announces trade deal granting U.S. “total access” to Vietnam’s markets.
- Vietnam agrees to 20% tariffs on exports, 40% on transshipping.
- Deal aims to cut trade deficit and curb Chinese transshipment practices.
Trump Announces Breakthrough Vietnam Trade Deal, Boasts of “Total Access” for U.S. Exports
Deep Look
WASHINGTON — President Donald Trump announced Wednesday that the United States has struck a new trade agreement with Vietnam, claiming it grants American businesses unprecedented access to Vietnamese markets.
“It will be a Great Deal of Cooperation between our two Countries,” Trump wrote on Truth Social. “The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping.”
In return, Trump asserted, Vietnam has agreed to open its markets completely to American goods. “Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” he said. “We will be able to sell our product into Vietnam at ZERO Tariff.”
Trump said he personally negotiated the deal during conversations with To Lam, the General Secretary of Vietnam’s Communist Party.
“Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure,” Trump said, adding he believes American SUVs and larger vehicles could become popular products in Vietnam.
Vietnam Previously Targeted by U.S. Tariffs
Vietnam had previously faced a 46% tariff under Trump’s sweeping “Liberation Day” reciprocal tariffs announced earlier this year. That tariff was suspended for 90 days and is due to expire next week.
Vietnamese Prime Minister Pham Minh Chinh had signaled optimism in June that an agreement would be reached before the deadline.
“Vietnam and the U.S. share a deep understanding on tariffs… I hope that all the positive things will come for us,” Chinh said at the time.
Trade Imbalance and Transshipment Concerns
According to the U.S. Trade Representative’s Office, goods trade between the U.S. and Vietnam reached $149.6 billion in 2024. U.S. exports to Vietnam were valued at $13.1 billion, while imports totaled $136.6 billion — creating a $123.5 billion trade deficit for the U.S., an 18.1% increase from 2023.
Vietnam faces a challenging diplomatic balance between maintaining robust trade ties with the United States — its largest export market and security partner — while avoiding antagonizing China, a key investor and neighbor.
Following Trump’s tariff announcements in April, Vietnam’s Government Office held emergency meetings to address U.S. concerns about intellectual property theft and transshipment abuses. Vietnamese officials were instructed to tighten trade controls and devise strategies to prevent illicit transshipment — a practice where goods from China are minimally processed in Vietnam and then re-exported to the U.S. as “Made in Vietnam.”
Many Vietnamese exports to Western markets include significant Chinese inputs, with Chinese firms having established factories in Vietnam specifically to supply U.S. customers. U.S. officials have long accused China of exploiting Vietnam’s lower tariff status by routing goods through the country.
Further details about the new trade agreement, including specific products that might benefit from tariff-free status, were not immediately disclosed by the White House or Vietnamese officials.
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