US Reaches Trade Deal with Vietnam Raising Tariffs, Opening Markets

President Donald Trump announced a new trade deal with Vietnam that adjusts tariffs on Vietnamese goods entering the U.S. to 20%, down from a previously proposed 46%, while imposing a 40% tariff on transshipped goods to prevent tariff evasion through Vietnam. In exchange, Vietnam has agreed to remove all tariffs on American products, granting the U.S. full access to its markets, a move described by Trump as unprecedented. The deal aims to address the significant U.S. trade deficit with Vietnam, where imports heavily outweigh exports, and includes a commitment from Vietnam to purchase at least $2 billion in U.S. farm products over three years. Major American apparel companies sourcing from Vietnam, such as Nike and Levi Strauss, are expected to benefit from lower tariffs and reduced supply chain risks, though they remain cautious about long-term impacts. The agreement reflects a strategic use of tariffs by the U.S. to promote fairer trade and protect American businesses while opening new market opportunities for U.S. exporters. This deal follows intense negotiations and comes as the Trump administration seeks to finalize trade agreements ahead of self-imposed deadlines and amid ongoing global trade tensions.