U.S. President Donald Trump announced on the 2nd (local time) that a trade agreement has been reached between the United States and Vietnam. The United States will impose a 20% tariff on Vietnam, excluding certain products.
On the same day, President Trump stated on his social media platform Truth Social, "I just made a trade deal with Vietnam."
According to Trump, the agreement stipulates a 20% tariff on all products exported from Vietnam to the United States, and a high tariff of 40% will be imposed on transshipping to third countries.
In April, Trump set a reciprocal tariff rate of 46% for Vietnam, and the two countries agreed to lower it to 20% with this deal.
On the other hand, the United States has opened a pathway for its products to be exported to the Vietnamese market "duty-free."
Trump said, "Vietnam's complete opening of its market to the United States is an unprecedented measure," adding that "American products will soon be sold to Vietnam duty-free." He noted that large engine vehicles, such as sport utility vehicles (SUVs), which are popular in the United States, will enter the Vietnamese market.
Trump mentioned that the negotiations with Vietnam took place after a direct conversation with General Secretary of the Communist Party of Vietnam To Lam and stated that it would serve as a key moment for close cooperation between the two countries.
This marks the first time that the Trump administration has reached agreements with countries in the Indo-Pacific region.
The Trump administration's suspension of reciprocal tariffs is expected to end on the 8th. Ahead of the expiration of the suspension, the Trump administration has been conducting trade negotiations with trading partners regarding tariff rates, trade balance, and the elimination of non-tariff barriers. Prior to Vietnam, a final agreement was reached with the United Kingdom last month.
Earlier, the reciprocal tariffs went into effect on April 9 for 57 economic entities, including the European Union. However, a measure to suspend the reciprocal tariffs for 90 days, excluding China, was implemented about 13 hours later.