On July 2, 2025, President Donald Trump announced a new trade agreement with Vietnam. This deal aims to address the trade imbalance between the two countries.
Under the agreement, Vietnamese exports to the U.S. will face a 20% tariff, a decrease from the previously proposed 46%. In return, U.S. goods will have duty-free access to the Vietnamese market. A 40% tariff will also be applied to goods trans-shipped through Vietnam to prevent the circumvention of U.S. tariffs on Chinese imports.
The agreement followed discussions between President Trump and Vietnam's Communist Party chief, To Lam. Vietnam exports nearly 30% of its products to the U.S., and is a manufacturing hub for major companies. This deal is significant, especially considering the U.S. had a $122 billion trade deficit with Vietnam last year.
Economist Mary Lovely noted that such deals are more feasible with smaller partners. This agreement reflects tighter economic ties amid broader geopolitical strategies in the Asia-Pacific region.