The United States and Vietnam reached a trade deal, President Donald Trump said Wednesday, enacting a 20% tariff on Vietnamese goods sold in America in exchange for no tariff on American goods sold in Vietnam.
Trump said Vietnam will pay a 20% tariff on goods sold directly into America and a 40% tariff on goods transported through Vietnam from another country, where import tax rates are higher. In exchange, the U.S. will have “TOTAL ACCESS” to Vietnam’s trade markets, Trump said.
“We will be able to sell our product into Vietnam at ZERO Tariff,” Trump wrote on social media.
Trump suggested opening Vietnam’s market to American-made SUVs.
“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 in Vietnam,” Trump wrote in a social media post Wednesday.
Trump’s deal comes days before his July 9 deadline to enact tariffs on nearly every U.S. trading partner.
Trump first announced tariffs on trading partners in April before backing off and imposing the July 9 deadline.
At April’s announcement, the administration said Vietnam charged 90% in tariffs to the United States. The administration initially proposed a 46% reciprocal tariff against the nation.
The new trade deal represents a sharp decline in Vietnam’s rate previously reported by the Trump administration.
Vietnam ships a variety of goods to the United States, including clothes, shoes, electronics and furniture.
Trump celebrated the deal and spoke highly of Vietnamese General Secretary Tô Lâm for reaching an agreement.
“Dealing with Secretary Tô Lâm, which I did personally, was an absolute pleasure,” Trump said.
