- The United States would set rates on many Vietnamese exports to 20%.
- Higher prices should take effect next week without agreement.
- American cars can have preferential access to the Vietnam market.
The United States will place a price below 20% on many Vietnamese exports, said Donald Trump on Wednesday, refreshing tensions with his tenth largest trading partner a few days before the American president could increase the samples on most imports.
Vietnamese goods will now face a tariff of 20% and all third-party countries in Vietnam will face a 40% tax, he said. Vietnam would accept American products with a zero percent rate, he added.
“It is my great honor to announce that I have just concluded a trade agreement with the Socialist Republic of Vietnam,” said Trump on Truth Social after talking with Lam the most chief in Vietnam.
Trump’s announcement occurs just a few days before a deadline of July 9, he decided to resolve negotiations before not increasing the prices of most imports, one of the economic policies of the Republican.
As part of this plan announced in April, American importers of Vietnamese goods should have paid a rate of 46%.
The details were rare, and it was not immediately clear how any transmission provision targeting products largely in China, then finished in Vietnam would be implemented.
The Vietnamese government said in a statement that the two countries agreed on a joint declaration on a commercial framework. He did not confirm the specific rate levels mentioned by Trump.
Vietnam would undertake to “provide preferential access to the market to American products, including high -engine cars,” said the government of Hanoi.
An agreement between the two countries would be a political boost for Trump, whose team has struggled to quickly conclude agreements with Washington’s largest business partners before the deadline.
Although the administration has picked up an agreement to come with India, the trues reach earlier with Great Britain and China was limited. Translections with Japan, the sixth trade partner of the United States and the closest ally in Asia, appeared in a dead end.
The United States is the largest export market in Vietnam and growing economic, diplomatic and military ties of the two countries are coverage against the greatest strategic rival in Washington, China. Vietnam has worked to maintain close relationships with the two superpowers.
The shares of American clothing and sports clothing manufacturers, including Nike, Under Armor and North Face, VF Corp Rose to the news.
LAM has also asked Trump the United States to recognize Vietnam as a market economy and remove restrictions on high-tech products exports to the country, Vietnam said. These changes have long been wanted by Hanoi and rejected by Washington.
The White House and the Vietnamese Ministry of Commerce have not responded to requests for additional comments.
Growing commercial spa
Since Trump imposed prices on hundreds of billions of dollars in Chinese products in his 2017-2021 mandate, US trade with Vietnam has exploded, although almost all in the form of goods in the United States of Vietnam while the important ones sought bypass solutions for China.
Since 2018, Vietnam exports have increased by almost $ 50 billion that year to around $ 137 billion in 2024, according to data from the census office. US exports to Vietnam are up only about 30% during this period – to just over $ 13 billion last year, compared to less than $ 10 billion in 2018.
“” Transhupping “is a vague and often politicized term in the application of trade. The way it is defined and how it is applied in practice will shape the future of American-Vietnamese commercial relations,” said Dan Martin, sales advisor at Dezan Shira & Associates, on LinkedIn.
Trump announced a wave of prices for the countries of the world on April 2, before taking a break from most tasks until July 9. More than a dozen countries are actively negotiating with the Trump administration to avoid a sharp increase in prices on their exports.
Great Britain has accepted a 10% American rate on many goods, including cars, in exchange for special access for plane engines and British beef.
As the agreement concluded with Great Britain in May, that with Vietnam looks more like a framework than a finalized commercial pact.
China.
“If Trump had stayed with 46%, much higher than the current price on China, Vietnam feared being disadvantaged by its competitors, in particular in Southeast Asia,” said Murray Hiebert, a main partner with the Southeast Asia program at CSIS, a thinking group.
“It would probably have worked Vietnam’s confidence in the United States and it could have reduced part of its security cooperation with Washington, especially at a time when China diverted its attention in the Southern China Sea from Vietnam to the Philippines.”