Trump announces trade deal with Vietnam

Trump announced a trade deal with Vietnam, stating that Vietnam will grant the US full access to its markets. Under the agreement, Vietnam will not impose tariffs on US products. The US will, in turn, charge 20% tariffs on imports from Vietnam under the new deal. Tariffs are typically paid by the importing company, which may pass on the cost to consumers. The deal also includes a 40% tariff on goods passing through Vietnam in a process called 'trans-shipping'.

Trump's senior trade advisor, Peter Navarro, revealed that a significant portion of Vietnamese exports to the US are actually Chinese products routed through Vietnam. The deal aims to provide the US with greater market access in Vietnam, a key manufacturing hub for major brands like Nike and Apple. While the news initially boosted share prices of companies manufacturing in Vietnam, concerns remain about the impact of the 20% tax on products.

Adam Sitkoff of the American Chamber of Commerce in Hanoi expressed optimism about the trade deal's benefits for Vietnam, but raised questions about the definition and enforcement of 'trans-shipping'. Vietnam's General Secretary invited Trump to visit the country, as the Trump family announced investment projects in Vietnam, including a $1.5bn plan for hotels, golf courses, and real estate.

Trump's trade policies have led to negotiations with various countries, with the US recently finalizing deals with Britain and China. The trade landscape continues to evolve as countries seek to navigate the changing tariff environment.

According to the source: BBC.