What do you know about Trump's tariffs on Vietnam under the new trade deal – Country
U.S. President Donald Trump announced on Wednesday a trade deal with Vietnam that would allow the inclusion of U.S. goods into the country without responsibility.
By comparison, Vietnam's exports to the United States will face a 20% tax.
On his Truth Society Platform, Trump announced “a lot of cooperation between our two countries.”
The deal could help companies that import a lot of things from Vietnam, including Nike, whose shares rose 4.1%. Vietnam's factories accounted for half of all Nike branded footwear in the fiscal year 2024.
Nike's stock rally raised our market on Wednesday to make our market higher and higher.
In April, Trump announced a 46% tax on Vietnam’s import tax, his so-called reciprocity tariff, targeting dozens of countries operating a trade deficit with the United States. Trump immediately suspended reciprocity tariffs for 90 days to allow negotiations like Vietnam.
The suspension expired on Tuesday, but so far the Trump administration has reached a trade deal with only one of the countries (UK). (Trump also reached a “framework” agreement with China in another trade dispute.)
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“Vietnam is very keen to get out of the situation,” said Mary Cookie, a senior researcher at the Peterson Institute for International Economics. “This forces a smaller country to basically eat it. We can do it. This is a big country that everyone is paying attention to.” She doubts whether Trump can impose such bias on a deal that big trading partners such as the EU and Japan.
Last year, the United States traded $122 billion with Vietnam. This is the third largest trade gap in the United States – the difference between goods and services it buys from other countries – compared to China and Mexico.
Trump said that in addition to the 20% tariff, the United States will impose a 40% tax on “allowing” – a commodity from another country heading to the United States in Vietnam. Washington complained that Chinese goods have been transiting through Vietnam to avoid using higher U.S. tariffs.
William Reinsch, a former U.S. trade official and now a former trade official at the Center for Strategic and International Studies, said the importance of transshipment repression will depend on “the term is defined and how it is performed. Some transshipments are totally fraudulent fraud – simply changing the label; some are legally substantial changes in Vietnam, which have changed a lot.
A study conducted in Harvard Business Review in February found that “re-routing is much less than previous rescheduling.”
In May, Vietnam approved a $1.5 billion project from the Trump Organization and local partners to build a golf resort complex near Hanoi that covers an area of about 336 football fields.
Vietnam is a beneficiary of the U.S. efforts to deal with China’s influence. Companies hoping to diversify their supply chains from China to Vietnam.
In 2023, it becomes the only country to host President Joe Biden and Chinese leader Xi Jinping on a state visit. That year, the United States upgraded Vietnam to its highest diplomatic position – the strategic partner in Rich inside – comparing it with China and Russia.
& Copy 2025 Canadian Press
