U.S. President Donald Trump has announced a new trade deal between the United States and Vietnam. The deal was made after he spoke directly with General Secretary To Lam, the leader of the Communist Party of Vietnam.
As part of the agreement, Vietnam will add a 20% tariff on all goods sent to the United States and a 40% tariff on goods that are transshipped. In return, Vietnam will do something it has never done before — it will give the United States full access to its market.
This means American companies can now sell their products in Vietnam without paying any tariffs. President Trump said this is a major win for the U.S., especially for products like SUVs and large vehicles, which are popular in America and could now be sold more easily in Vietnam.
President Trump called the deal a “great honor” and said working with Vietnam’s General Secretary To Lam was a pleasure. The agreement is expected to help American businesses grow and make trade between the two countries stronger.
Vietnam-U.S. Trade & Investment Summary (2024)
In 2024, total U.S. goods trade with Vietnam reached approximately $149.6 billion. U.S. exports to Vietnam rose by 32.9% from the previous year to $13.1 billion, a $3.2 billion increase from 2023. Imports from Vietnam grew 19.3%, totaling $136.6 billion—up by $22.1 billion. As a result, the U.S. recorded a goods trade deficit of $123.5 billion with Vietnam in 2024, marking an 18.1% rise ($18.9 billion) compared to 2023.
Trump Announces Vietnam Tariff Deal; China Warns, Vietnam Responds
Donald Trump said Vietnam will pay a 20% tariff on all goods sent to the U.S. and 40% on any transshipped goods. China warned it will react strongly if countries make deals with the U.S. that hurt its interests. Vietnam’s state media reported that leader To Lam spoke with Trump over the phone about tariffs. Vietnam also agreed to open its market for U.S. cars, while the U.S. will lower tariffs on several Vietnamese products.
Vietnam’s To Lam Urges Trump to Boost Trade, Invites Him to Visit
Vietnam’s leader To Lam held a phone call with US President Donald Trump, during which he requested the United States to recognize Vietnam as a market economy and called for the removal of restrictions on high-tech product exports to Vietnam. During the conversation, To Lam also extended an invitation to President Trump to visit Vietnam.
Apparel Stocks Jump on Trump-Vietnam Trade Deal News
Shares of clothing brands rose after Donald Trump announced a trade deal with Vietnam.
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