Wed, 02 Jul 2025

Wed, 02 Jul 2025 Trump announces trade deal with Vietnam

The US plans to charge 20% tariffs on Vietnamese goods - less than half the rate set to go into effect next week.
US-Vietnam Trade Deal
* The US and Vietnam have reached a trade agreement, with the US agreeing to charge 20% tariffs on imports from Vietnam.
* Previously, US products sent to Vietnam faced a 46% tariff, which was set to increase next week as part of President Trump's "reciprocal" tariffs announced in April.
* Under the new deal, Vietnam will impose no tariffs on US products, according to President Trump.
* The agreement also includes a steeper 40% tariff on goods that pass through Vietnam in a process called "trans-shipping".
* A third of all Vietnamese exports to the US are actually Chinese products shipped through Vietnam, according to Peter Navarro, Trump's senior counsellor on trade and manufacturing.
* Vietnam has become a major manufacturing hub for brands such as Nike, Apple, and Lululemon.
* The deal may help alleviate concerns that tariffs will drive down demand for products made in other countries.
* Companies making goods in Vietnam initially saw an increase in share prices, but trimmed their gains after the 20% tax was announced.
  >>