Trump announces Vietnam trade agreement
President Trump’s 90-day suspension on tariffs could end early next month. For truck drivers in Southern California ports, that could mean even more economic uncertainty.
President Donald Trump announced on Wednesday that he hit Trade Contract With Vietnam.
“It will cooperate greatly between our two countries. The condition is that Vietnam will pay 20% tariffs to the United States on all goods sent to our territory, and 40% tariffs on transshipping,” Trump wrote in a post on True Society.
“In return, Vietnam does something they have never done before and gives the United States full access to the market for trade. In other words, they mean “opening their market to the United States.” Trump Added.
Trump says he reached a deal after speaking with Lam, the general secretary of the Communist Party of Vietnam.
Vietnam has prepared to crack down on China’s trade to avoid Trump’s tariffs: Report
President Donald Trump and Florida Gov. Ron DeSantis will tour the immigration detention center called “Crocodile Alcatraz” on July 1, 2025, on the premises of the Dade Carier Training and Transition Airport in O’Copy, Florida. (Andrew Caballero-Reynolds / AFP Getty Images / Getty Images)
“As mentioned at times, it is my opinion that a large engine vehicle that works very well in the US will be a great addition to the various product lines within Vietnam.
Vietnam was before Hit with 46% tariff As part of Trump’s “Liberation Day” mutual tariff announcement.
That tariff was later suspended for 90 days, with the suspension expired next week.
Vietnam’s prime minister, Pham Minh Chingch, said in late June he hopes to reach a trade deal with the US before the deadline. Reuters.
“I hope you see results come sooner than two weeks,” Chinch said. “Vietnam and the US share a deep understanding of tariffs… I hope all positive things come for us.”
A representative from the US Trade Bureau said, “U.S. goods trade with Vietnam was estimated at $14.96 billion in 2024,” and “in 2024, exports of US goods to Vietnam increased by $13.1 billion, up 32.9% ($3.2 billion) from 2023.”
“The imports of US goods from Vietnam totaled $136.6 billion in 2024, an increase of 19.3% ($22.1 billion) from 2023. In 2024, the US goods trade deficit was $123.5 billion, and in 2023, an increase of 18.1% ($18.9 billion),” he added.
Southeast Asian countries have been caught up in delicate balancing acts as they seek to maintain trade between their biggest export markets and their security partners.
The Vietnamese Government Office, a coordination body between ministries, held an emergency meeting with government trade experts on April 3rd after President Donald Trump announced the tariffs. According to those explained at the conference, the aim was to address Washington’s concerns over alleged theft and abuse of transport of intellectual property.
At the meeting, the Ministry of Trade and Customs officials were told to increase control and were given two weeks to devise a plan to crack down on illegal transshipment.
Many of the goods exported to the west by Vietnam have Chinese-made inputs, and Chinese companies have established factories in the country to serve US customers. In many cases, Vietnamese workers process the goods and then are legally shipped to the US under the “Made in Vietnam” label.
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US officials have argued that China will use Vietnam as Vietnam to lower tariffs on goods that do not have much involvement in Vietnam.
Bradford Betz and Reuters from Fox Business contributed to this report.