The US will raise its tariff rate on imports from Vietnam to 20pc under a deal concluded today, President Donald Trump said.
Vietnam was one of the largest targets of US tariffs imposed under Trump, with a 10pc tax on imports from that country effective since 5 April. The rate could have gone to as high as 69pc under initial plans by Trump. Instead, Trump said via his social media platform Wednesday that US imports from Vietnam would be subject to a 20pc rate, with a separate 40pc rate on products "trans-shipped" through Vietnam.
Vietnam's leader, Communist Party general secretary To Lam, confirmed that a trade deal was agreed, without the granular details provided by Trump. "The US will significantly reduce reciprocal tariffs on many imports from Vietnam, and will continue to work with Vietnam to resolve outstanding trade-related issues," Vietnam's government said.
The issue of "trans-shipment", to which Trump alluded, refers to allegations by US trade officials that much of Vietnam's shipments to the US include items originally produced in China and relabeled with a new certificate of origin.
Trump's administration said in April that Vietnam and other targets of US tariffs could negotiate lower rates if they commit to buying more US energy commodities. Trump on Wednesday did not mention such commitments by Vietnam. "We will be able to sell our product into Vietnam at ZERO Tariff", Trump said. Vietnam said it will give preferential market access for US goods, including SUVs.
The trade deal with Vietnam is the third trade agreement Trump has announced since beginning to impose tariffs on major US trade partners. Just like the deals with the UK and China, the latest deal keeps high tariffs in place.
Trump said in recent days that a trade deal with India is close to completion. Senior EU trade officials are visiting Washington on Wednesday to put the final touches on a preliminary trade deal.
Trump set 9 July as a deadline for foreign countries to negotiate trade deals, or face significantly high tariff rates on their products. US treasury secretary Scott Bessent said that the deadline could be pushed back. But Trump on Tuesday said he had no plans to extend the deadline.
