Trump Announces New Trade Deal with Vietnam, Imposes 20% Tariff on Imports

July 3, 2025

WASHINGTON — President Donald Trump has unveiled a new trade agreement with Vietnam that includes a 20% tariff on Vietnamese goods imported into the U.S., while allowing American products to enter Vietnam duty-free.

Key Details of the Agreement

• 20% Tariff on Vietnamese Exports: The U.S. will impose a 20% tariff on goods imported from Vietnam, a move aimed at protecting American industries.

• 40% Levy on Transshipped Goods: A stricter 40% tariff will apply to products suspected of being rerouted through Vietnam to avoid U.S. trade restrictions, particularly targeting Chinese-made goods.

• Duty-Free Access for U.S. Exports: Vietnam will eliminate tariffs on American products, potentially boosting U.S. agricultural and manufacturing exports.

Why This Matters

The deal comes amid ongoing U.S. efforts to reduce trade deficits and counter China’s economic influence. Vietnam, a major exporter of electronics, textiles, and footwear, has seen its trade surplus with the U.S. grow in recent years.

• Impact on Businesses: Vietnamese exporters may face higher costs, while U.S. companies gain easier access to Vietnam’s market.

• Political Implications: The agreement could strengthen U.S.-Vietnam relations ahead of the 2025 APEC summit.