U.S.-Vietnam Trade Pact Imposes New Tariffs

The United States and Vietnam have finalized a trade agreement imposing a 20% tariff on most Vietnamese exports to the U.S. and a 40% tariff on transshipped goods, replacing a previously threatened 46% rate. In exchange, Vietnam will eliminate tariffs on U.S. goods, granting American companies zero-tariff access to the Vietnamese market. The deal, confirmed by both U.S. and Vietnamese officials, was reached just before the July 9 tariff deadline and coincides with recent U.S. efforts to ease certain trade restrictions with China. The announcement led to Vietnamese stocks reaching a three-year high and boosted shares of major U.S. companies like Nike and Wayfair, which depend on Vietnamese supply chains. Despite the agreement, U.S. companies such as Apple will face increased import costs due to the new tariffs. The agreement is part of the broader shift in U.S. trade policy amid ongoing negotiations with other key partners.