President Trump attends a press convention in Hanoi on Nov. 12, 2017, throughout his first time period in workplace.
Luong Thai Linh/AFP Contributor/AFP through Getty Pictures
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Luong Thai Linh/AFP Contributor/AFP through Getty Pictures
President Trump says the U.S. has made a commerce take care of Vietnam as a part of his push to renegotiate tariffs with dozens of various international locations around the globe. It comes because the president’s self-imposed deadline for these tariff negotiations is only a week away.
In a social media put up, Trump mentioned tariffs will now be 20% on items from Vietnam and 40% on items shipped by means of Vietnam. Whereas Trump wrote that Vietnam pays these tariffs, that’s unfaithful. U.S. companies importing items from Vietnam can be paying the taxes to the federal government.
He mentioned that in return, Vietnam would “give america of America TOTAL ACCESS to their Markets for Commerce,” that means that “we will promote our product into Vietnam at ZERO Tariff.” He particularly cited SUVs as a product that will be exported in bigger numbers to Vietnam. Nonetheless, the White Home has not launched additional particulars on this settlement.
The announcement got here after Trump in April proposed a steep 46% tariff on Vietnamese imports — one of many highest charges utilized to any nation — saying he would deal with the U.S. commerce deficit with Vietnam. He has since quickly set the tariff at 10%, which Trump known as a “pause,” pending tariff negotiations between officers in Hanoi and Washington.
Commerce relations between the U.S. and Vietnam have grown remarkably because the U.S. lifted its financial embargo on Vietnam in 1994. The 2 international locations normalized diplomatic ties in 1995.
In 2001, the U.S. and Vietnam signed a bilateral commerce settlement, granting Vietnam most-favored-nation standing and paving the way in which for its ascension into the World Commerce Group.
Over the following 20 years, commerce between the 2 nations skyrocketed, reaching $149.6 billion by 2024 — a couple of 50-fold improve since 2002.
In 2023, the U.S. and Vietnam elevated their relationship to a “complete strategic partnership,” strengthening ties which were essential to Vietnam’s financial development. The U.S. is now Vietnam’s largest export market, accounting for almost a 3rd of its whole exports. Based on the Commerce Division, Vietnam’s major exports to the U.S. embrace equipment, home equipment, clothes and footwear.
Nonetheless, with vital commerce imbalance favoring Vietnam elevating considerations in Washington — the U.S. commerce deficit reached over $123.5 billion in 2024 and $39.1 billion within the first quarter of 2025, U.S. officers have been urgent Vietnam to deal with non-trade limitations, fight fraud, and curb unlawful transshipments. Additionally they urge Vietnam to additional open its market to U.S. items and providers.
The Vietnamese authorities set an formidable 8% development goal for 2025, however a latest report supported by the Asian Growth Financial institution recommended that U.S. reciprocal tariffs of 20% or increased may hinder reaching this objective.
