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Washington, D.C. — President Donald Trump announced on Wednesday that the United States has finalized a new trade agreement with Vietnam, imposing a 20% tariff on Vietnamese imports and a 40% tariff on transshipped goods entering the U.S. market.
The new tariff regime comes just ahead of the 9 July deadline, which would have triggered a previously proposed 46% tariff announced in April.
In a statement posted on Truth Social, President Trump said:
“Vietnam will pay the United States a 20% tariff on any and all goods sent into our territory, and a 40% tariff on any transshipping. In return, Vietnam will do something they have never done before—give the United States total access to their markets for trade.”
He added that U.S. products will now enter Vietnam at zero tariffs, with particular emphasis on American large-engine vehicles:
“The SUV, or as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam.”
Vietnam was the sixth-largest source of U.S. imports in 2024, accounting for $136.5 billion worth of goods, including apparel, electronics, and footwear from brands like Nike and Lululemon.
While the Trump administration has renegotiated major trade agreements with China and the U.K., this deal with Vietnam marks a significant expansion of its bilateral trade efforts in Southeast Asia.
Meanwhile, Federal Reserve Chair Jerome Powell, speaking in Sintra this week, cautioned that the full economic impact of the new tariffs would become more apparent over the summer.
