Trump Announces New Trade Deal with Vietnam

President Trump has announced a trade deal with Vietnam as part of his efforts to renegotiate tariffs with countries worldwide. The deal includes tariffs of 20% on goods from Vietnam and 40% on goods shipped through Vietnam. However, U.S. businesses will be paying these tariffs, not Vietnam. In exchange, Vietnam will grant the U.S. access to its markets with zero tariffs, allowing for increased exports such as SUVs. Further details of the agreement have not been disclosed by the White House.

In April, Trump proposed a 46% tariff on Vietnamese imports but later set it at 10% as a temporary measure. Trade relations between the U.S. and Vietnam have grown significantly since the 1990s, with trade volume reaching $149.6 billion by 2024. The U.S. is Vietnam's largest export market, accounting for a third of its exports.

However, concerns over the trade deficit have led U.S. officials to press Vietnam to address barriers, combat fraud, and open its market further. The U.S. has urged Vietnam to tackle these issues to maintain economic growth. The Vietnamese government aims for an 8% growth target in 2025, but U.S. tariffs could potentially hinder this goal.

According to the source: NPR.