Trump Announces Third Trade Deal Ahead of '90 in 90' Deadline

Newsweek

2 days ago

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President Donald Trump on Wednesday touted a new trade agreement with Vietnam, marking the third such deal that has been announced under escalating global trade tensions.
Why It Matters
The agreement comes as the Trump administration pursues a series of "take it or leave it" deals with multiple trading partners under tight deadlines. The trade framework departs from traditional, mutually negotiated arrangements, reflecting Trump's broader use of unilateral tariffs and set time frames to extract concessions from partners.
This approach, which has already been applied to other major U.S. partners like China, Japan and South Korea, has contributed to volatility in global markets and caused some uncertainty for American consumers, manufacturers and businesses.
President Donald Trump speaks with the press on board Air Force One as he travels from Ochopee, Florida, to Joint Base Andrews, Maryland, on July 1, 2025.
President Donald Trump speaks with the press on board Air Force One as he travels from Ochopee, Florida, to Joint Base Andrews, Maryland, on July 1, 2025.
ANDREW CABALLERO-REYNOLDS/AFP via Getty Images
President Trump Remarks
Trump announced the news in a Truth Social post, stating he personally negotiated the arrangement with To Lam, the general secretary of the Communist Party of Vietnam.
"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," Trump wrote on social media. "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. Thank you for your attention to this matter!"
Key Terms of the U.S.-Vietnam Agreement
The new deal stipulates a 20 percent tariff on all Vietnamese exports to the United States and a 40 percent levy on goods transshipped through Vietnam.
Concurrently, Vietnam agreed to eliminate its own tariffs targeting U.S. goods, meaning American manufacturers and exporters can now sell to Vietnamese markets without existing trade barriers.
The deal closely follows a separate trade agreement with China, where the U.S. maintained high tariffs while securing rare earth supplies and facilitating Chinese student entry.
Wider Trade Strategy and Timelines
The Vietnam agreement comes amid a broader administration push to finalize trade deals ahead of Trump's self-imposed "90 in 90" deadline—a period of 90 days for 90 targeted trade deals or renegotiations globally.
In June, after a trade agreement with China, Trump indicated that "around 15 countries" were negotiating under the threat of significant tariffs being imposed if deals are not struck in time.
The president also said last month that "at a certain point" his administration would send letters to trade partners, saying, "This is the deal..." and essentially give countries an ultimatum to either sign an agreement or not do business with the U.S.
Impact on Global Trade and Markets
This series of rapid trade deals and shifting tariff policies has had visible repercussions on global equity and currency markets, with heightened volatility reported in recent weeks.
U.S. officials, including Treasury Secretary Scott Bessent, acknowledged that deadlines for individual country deals might be extended if negotiations progress in good faith, but stressed the urgency of the current timetable, according to the New York Times.
Ramesh Venkat, associate professor of marketing with the Sobey School of Business and director of the David Sobey Retailing Centre at Saint Mary's University in Canada, told Newsweek via phone that larger companies and retailers can likely withstand the tariff impact—even if that means passing on the costs to consumers.
"They can probably withstand some of that," Venkat said. "But for the smaller retailers, mid-size retailers, I think the impact is going to be much more significant because it raises the cost of their inventory. So, they need more working capital to really buy inventory.
"That puts a real pressure on their finances, and a lot of them are not in a position to be able to do that."
Economic, Business and Consumer Implications
The Trump administration's use of high tariffs and rigid deadlines deviates from prior multilateral negotiations and has raised alarm among industry voices.
Delta Air Lines CEO Ed Bastian stated, "Trying to do it all at the same time has created chaos in terms of being able to make plans," identifying weakened demand for air travel and broader uncertainty for planning.
Precedent Set by Recent China Deal
The Vietnam deal closely follows a separate trade agreement with China, where the U.S. maintained high tariffs—reportedly 55 percent for most Chinese goods—while securing rare earth supplies and facilitating Chinese student entry. Market reactions to these deals have generally been subdued, reflecting concerns over high tariffs and the sustainability of such agreements.
What People Are Saying
President Donald Trump, on June 27 on the urgency for new deals: "We could extend it. We could make it shorter... I'd like to just send letters out to everybody, 'Congratulations, you're paying 25 percent.'"
Treasury Secretary Scott Bessent, on negotiation timelines: The negotiations with trading partners could be "wrapped up by Labor Day," adding that "nothing gets done in Washington well in advance."
What Happens Next
The deal with Vietnam sets the stage for a cascade of similar offers to other trading partners as the Trump administration races toward the end of its self-imposed '90 in 90' deadline.