The deal is positioned as a response to previous tariffs placed on Vietnam and is aimed at curbing the movement of Chinese goods through Vietnam.
**Preliminary Trade Agreement Between the U.S. and Vietnam Announced by Trump**
**Preliminary Trade Agreement Between the U.S. and Vietnam Announced by Trump**
President Trump discloses a new trade pact with Vietnam aimed at reducing tariffs in exchange for market access for American goods.
On July 2, 2025, President Donald Trump announced a preliminary trade agreement with Vietnam that aims to enhance bilateral trade by rolling back some tariffs imposed on Vietnamese imports. The decision comes as part of a strategy to pivot trade flows following significant tariffs on Chinese goods during his previous term. This new agreement positions Vietnam as the second country to secure a limited trade pact in the wake of Trump's tariffs.
According to Trump, the deal will initiate a 20% tariff on all imports from Vietnam, alongside a steeper 40% tariff on any “transshipping” from China. This provision targets the concerns that Vietnam has been used as a conduit for Chinese manufacturers seeking to bypass U.S. tariffs. The specifics of which Vietnamese products will be affected by the higher tariff remain ambiguous, and the classification may depend on the proportion of Chinese components utilized in the goods.
Howard Lutnick, the Commerce Secretary, reinforced the administration's stance, stating on social media that imports that originate from other countries but are exported through Vietnam would be subjected to the higher tariff rate. This aims to discourage the circumvention of tariffs and bolster the integrity of U.S. trade standards.
The preliminary agreement is seen as not only an economic maneuver but also as a strategic move to reshape trade relationships in the region, particularly in light of ongoing tensions with China. As negotiations progress, the implementation of these tariffs and the precise details surrounding the products impacted will be closely monitored.
