Vietnam Seeks Lower Rate After Surprise 20% Trump Tariff Announcement

Vietnam rushed to meet a July 9 trade deadline set by U.S. President Donald Trump to avoid a steep 46% tariff, resulting in an announced 20% tariff rate. However, the Vietnamese government and manufacturers remain uncertain and concerned due to the absence of a detailed agreement and ambiguous clauses, particularly regarding a potential 40% tariff on 'transshipped' goods containing Chinese components. Vietnam's leadership was reportedly surprised by Trump's public announcement of the 20% tariff, as they believed they had negotiated a lower rate between 10% and 15%, and are still seeking to reduce it. No official documents have been released by either side, and Vietnam has not formally acknowledged the deal, fueling doubts about the agreement's status. The confusion has left Vietnamese exporters, especially in the garment sector reliant on Chinese materials, facing unclear tariff implications just weeks before an August 1 reset. Vietnamese officials have focused on diversifying export markets and supply chains in response to the ongoing tariff uncertainty.