In an unexpected yet bold move, U.S. President Donald Trump announced on Wednesday that the U.S. has reached a trade deal with Vietnam as the July 9 deadline looms.
According to the agreement, Vietnam will face a 20% tariff on its exports to the U.S. and a steep 40% tariff on transshipping — a measure designed to hit goods rerouted from other countries through Vietnam for U.S. markets. U.S. Commerce Secretary Howard Lutnick explained that this transshipping tariff aims to prevent products from playing musical chairs across borders.
In contrast, Trump claimed that U.S. products would enter the Vietnam market with a zero tariff. As he shared on Truth Social, Vietnam will do something unprecedented by providing "TOTAL ACCESS" to its markets for U.S. trade, meaning American goods can roll in tariff-free. 😎
This deal comes on the heels of earlier measures when a hefty 46% duty was imposed on Vietnam in early April — later reduced to 10% to allow time for negotiations. With Vietnam exporting nearly $137 billion worth of goods to the U.S. in 2024, especially in textiles and sportswear, this agreement could signal a major shift in trade dynamics.
For young entrepreneurs, investors, and market enthusiasts, this is a significant move that might boost business opportunities and reshape international trade. Stay tuned as we follow how this deal unfolds on the global stage! 🚀
Reference(s):
cgtn.com
