Trump reports a "agreement" with Vietnam
In a significant development, President Donald Trump announced a new trade agreement with Vietnam, marking a compromise that aims to regulate supply chain practices while expanding U.S. market access in Vietnam.
Contrary to initial threats, the tariff that Vietnam pays on all exports to the U.S. will not be 46%, but instead, a more moderate 20% levy will be applied. Similarly, a 40% tariff will be imposed on goods that are transshipped through Vietnam, targeting products that originate in China but are routed through Vietnam to evade tariffs.
In return, Vietnam has committed to dropping all tariffs on U.S. imports to zero, marking a significant opening of Vietnam's market to American goods and addressing longstanding blocks Vietnam had on certain U.S. products.
While the framework agreement has been reached with these headline tariffs set, many finer details remain to be worked out as the countries continue their trade talks into early July 2025.
The source of the information is RIA "Novy Day" with a reporter named Anastasia Smirnova. It's important to note that President Trump's clarification of the details of the agreement on his social media platform, as previously stated, was not entirely accurate. The agreement did not specify a zero-tariff market access for U.S. products in Vietnam, contrary to Trump's statement.
The agreement was not solely the result of negotiations between Trump and General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong, but was also announced in April. During these negotiations, the initially announced 46% tariffs were reduced to 10%.
This arrangement reflects a compromise to avoid the punitive 46% U.S. tariffs initially threatened and aims to regulate supply chain practices while expanding U.S. market access in Vietnam. Vietnam, as the sixth-largest exporter of goods to the U.S. in 2024, with total purchases valued at $137 billion, stands to gain significantly from this agreement.
- The new trade agreement between President Donald Trump and Vietnam, announced in April, aims to regulate supply chain practices while expanding U.S. market access in Vietnam, marking a significant development in general-news and business.
- In contrast to initial announcements, the tariff that Vietnam pays on all exports to the U.S. will not be 46%, but instead, a more moderate 20% levy will be applied, affecting finance and industry.
- The agreement not only involves President Trump and General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong, but also includes a 40% tariff on goods that are transshipped through Vietnam, targeting products that originate in China but are routed through Vietnam to evade tariffs, influencing politics and international trade relations.
