President Trump on Wednesday announced a trade deal has been struck with Vietnam, setting the tariff rate on the country at 20 percent.
He said that, as part of the deal, Vietnam will give the U.S. access to its markets with no tariff rate. The U.S., however, will impose a 40 percent tariffs on goods made in a country with a higher import tax rate, but shipped to the states through Vietnam.
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that 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 that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” the president said on Truth Social.
He continued, “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that 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. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure.”
The president first announced that a deal was struck on Truth Social, days before the pause on reciprocal tariffs is set to expire.
Vietnam exports goods like apparel, including clothing and footwear, and electrical machinery to the U.S. The total in U.S. goods imports from Vietnam was over $136 billion in 2024 while the U.S. good exports to Vietnam was just over $13 billion, according to the U.S. Trade Representative. The U.S. goods trade deficit with Vietnam was over $123 billion.
The White House and Treasury Department did not immediately respond to a request for comment on the announcement.
Updated at 11:03 a.m. EDT
