Trump Announces New Tariffs on Vietnamese Imports
President Donald Trump has announced a new trade agreement with Vietnam that brings big changes to how goods are exchanged between the two countries. After weeks of high-level talks, the deal was made public just days before a major deadline that could have triggered even steeper taxes.
Under the new agreement, the United States will now charge a 20% tariff on all Vietnamese imports. Even tougher, a 40% tariff will be added to goods that are suspected of being “transshipped” — a process where items from other countries, especially China, are lightly modified or packaged in Vietnam before being shipped to the US.
President Trump made the announcement on social media, saying the deal was reached after discussions with Communist Party chief To Lam. Trump stated that Vietnam has agreed to remove all tariffs on American products, allowing US goods to enter the Vietnamese market tax-free.
“In other words, they will OPEN THEIR MARKET TO THE UNITED STATES,” Trump posted online.
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According to Vietnam’s Ministry of Foreign Affairs, the agreement includes a promise to work closely with the US on trade issues. Vietnam’s leader To Lam also asked the US to recognize the country as a “market economy” and to remove restrictions on exports of high-tech American products.
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The Trump administration has pressured Vietnam to stop transshipping goods. In this practice, companies send products from China through Vietnam to avoid US tariffs. Trump’s trade advisers, including Peter Navarro, warned that China was using Vietnam as a back door to reach US markets.
The higher 40% tariff will target these specific goods. The full list of which products will be affected has not been released yet.
The deal comes as part of Trump’s broader plan to apply “reciprocal tariffs” to dozens of countries. Earlier this year, the US imposed a 46% tariff on Vietnam. Later, it lowered the rate to 10% to give both sides time to negotiate.
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Vietnam has become one of the largest suppliers of goods to the United States. In 2024, it shipped nearly $137 billion worth of goods to the US. This made Vietnam the sixth-biggest source of US imports and gave it the third-largest trade surplus with America, behind only China and Mexico.
US companies rely heavily on products made in Vietnam. Major brands like Nike, Gap, and Lululemon manufacture clothes and shoes in Vietnamese factories. In May, shipments from the country to the US jumped 35% as firms rushed to export before the tariff deadline.
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Meanwhile, US exports to the conwere just $15 billion last year. Trump says the new deal will boost those numbers, especially in areas like automobiles. He expressed optimism that American SUVs — also called “large engine vehicles” — will become popular in Vietnam.
However, experts say that could be a challenge. With a per-capita income of just $4,500, many Vietnamese consumers rely on motorcycles rather than cars.
Vietnam has actively worked to improve its trade ties with the US. Senior officials visited America to sign deals and promote cooperation. These included purchases of $3 billion in US agricultural goods. Vietnamese trade leaders also urged top US companies to support the agreement.
In May, Eric Trump visited Vietnam. He is the son of President Trump. He attended a groundbreaking event for a luxury resort. The project is worth $1.5 billion. It is connected to the Trump Organization. Vietnamese Prime Minister Pham Minh Chinh also attended the event. Their meeting showed stronger business ties between the two countries.
The S&P 500 went up after Trump’s announcement. Stocks of companies like Nike and ON Holding jumped. They reached their highest points of the day. This shows that investors feel confident. Many of these companies rely on factories in Vietnam.