President Donald Trump said on July 2, 2025, that the U.S. struck a reciprocal trade deal with Vietnam just before the July 9 tariff deadline. Under this agreement:
- A 20% tariff will apply to most Vietnamese exports to the U.S.
- 40% tariffs will target goods transshipped through Vietnam (to curb Chinese rerouting).
- In return, U.S. goods will enter Vietnam duty-free, granting American exporters full market access
📌 Deal Highlights
- 20% tariff replaces the previously threatened 46% rate on Vietnamese imports businessinsider
- 40% levy aims to prevent third-party goods—often from China—from rerouting through Vietnam
- The U.S. gains duty-free access to Vietnam’s market, especially for goods like SUVs and farm products
📈 Market & Economic Impacts
| Sector | Effect |
|---|---|
| U.S. Retailers | Stocks of Nike, Lululemon, Deckers rose ~4% as import tariff clarity eased supply chain concerns |
| Vietnamese Stocks | VN‑Index surged ~0.5%, reaching its highest level since April 2022 |
| Trade Patterns | Vietnam may see short-term export slowdowns due to higher tariffs, but benefits from access to American goods |
🌏 Strategic Context
- The deal aligns with Trump’s “reciprocal tariff” strategy (also applied to the UK and China) and precedes the July 9 deadline
- Aimed at combating China’s supply‑chain tactics, especially rerouting through Vietnam
- Helps rebalance a $123 billion U.S.–Vietnam trade deficit, the U.S.’s third‑largest
🔮 What’s Next?
- Finalization of the framework with detailed implementation rules and effective dates.
- Businesses must adjust supply chains for imports from Vietnam to account for the new tariffs.
- The deal may set a template for handling tariffs and market access with other countries ahead of July 9.
✅ Final Summary
Trump’s trade deal with Vietnam introduces a 20% import tariff and 40% anti‑transshipment duty, while granting U.S. goods tariff-free access to Vietnam. This interim agreement seeks to stabilize trade flows and tackle supply‑chain manipulation just ahead of a looming deadline.
