In a last-minute negotiation, Donald Trump announced a major trade deal with Vietnam. Under the agreement, the U.S. will impose a 20% tariff on imports from Vietnam. This is much lower than the 46% initially proposed in Trump’s “reciprocal tariffs” plan.
The change, set to begin next week, comes as part of Trump’s broader effort to reshape trade. Economies like the European Union and Japan are still racing to make similar deals.
🤝 Vietnam Drops Tariffs on U.S. Goods
Vietnam has agreed to eliminate tariffs on American products. Trump praised the move on social media, calling it “TOTAL ACCESS” for U.S. trade. 
Tariffs are taxes on imports. They are usually paid by the buyer, not the producer. Companies often pass the cost to consumers. Many U.S. trade partners fear this reduces demand for their goods.
🚢 Tougher Rules for Trans-shipping
The U.S. will also add a 40% tariff on goods rerouted through Vietnam. This is known as “trans-shipping.”
Peter Navarro, Trump’s trade adviser, said one-third of Vietnam’s exports to the U.S. are actually Chinese goods. They pass through Vietnam to avoid direct tariffs.
Trump said this deal marks the first time Vietnam gives full trade access to the U.S.
🏭 Vietnam’s Role in Global Supply Chains
Vietnam has become a key manufacturing hub. Brands like Nike, Apple, Gap, and Lululemon now rely on it. Many moved production from China during Trump’s first term.
Stock prices for companies in Vietnam jumped on news of the deal. But the gains fell back once the 20% tariff was confirmed.
🗣️ Mixed Response from Business Leaders
Adam Sitkoff, from the American Chamber of Commerce in Hanoi, welcomed the deal. He said it puts Vietnam in a strong position. He expects companies to keep shipping to the U.S.
But Sitkoff raised concerns about the 40% trans-shipping tariff. He called the term “vague and politicized.” It’s unclear how well Vietnam can detect or stop illegal rerouting.
📞 Diplomacy and Business Ties Grow
Vietnam’s President, Tô Lâm, called Trump to discuss the deal. He also invited Trump to visit Vietnam.
At the same time, the Trump Organization announced big plans. Along with Kinh Bac City Development, they will invest $1.5 billion in hotels, golf resorts, and luxury housing. They are also scouting a site for a Trump Tower in Ho Chi Minh City.
💼 From Trade War to Negotiation
Trump shocked global markets in April. He proposed steep tariffs due to what he called a lack of reciprocity. Later, he paused the rollout and reduced the rate to 10% to allow for talks.
Since then, only Britain and China have reached temporary deals. Vietnam now joins that short list of U.S. trade partners.
