HCMC – U.S. President Donald Trump announced a landmark trade agreement with Vietnam on the evening of July 2 Hanoi time following discussions with To Lam, General Secretary of the Communist Party of Vietnam. All goods Vietnam sends to the United States are subject to a 20% tariff, Trump said.
However, a 40% tariff would be slapped on transshipped goods. Meanwhile, the deal grants the U.S. unprecedented access to Vietnamese markets for trade.
In a post on the social media platform Truth Social, Trump wrote: “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam.
“The terms are that Vietnam will pay the U.S. a 20% tariff on any and all goods sent into our territory, and a 40% tariff on any transshipping. In return, Vietnam will do something that they have never done before, give the United States of America total access to their markets for trade.”
He went on: “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!”
The agreement comes ahead of the July 9 deadline for tariff negotiations and follows earlier concerns about a proposed 46% tariff on all imports from Vietnam, which had sparked fears of economic strain and a potential shift in Vietnam’s geopolitical alignment.
The new 20% tariff, significantly lower than initially proposed, is seen as a compromise to foster balanced trade while addressing the U.S. trade deficit with Vietnam.
The 40% tariff on transshipments targets goods rerouted through Vietnam to avoid higher tariffs.
At 20:00 Hanoi time, Party General Secretary To Lam had a phone conversation with President Trump to discuss the strengthening of Vietnam-U.S. relations and ongoing trade negotiations.
