Trump Says Vietnam To Face 20% Tariff Under 'Great' Deal
The deal comes less than a week before Trump's self-imposed July 9 deadline for steeper tariffs on US trade partners to take effect if agreements are not reached.
Shares in clothing companies and sport equipment manufacturers -- which have a large footprint in Vietnam -- rose on the news, but later declined sharply after the president released details including the continued tariffs, which were higher than expected.
If confirmed, the terms of the agreement will significantly increase the price of shoes and clothing that Vietnam exports to the United States, but Hanoi escapes the threat of the more severe 46 percent tariff threatened by Trump in April.
"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," Trump wrote on his Truth Social platform.
He said that under the "Great Deal of Cooperation," imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers -- so-called "transshipping" -- will see a 40 percent tariff.
Trump's trade advisor Peter Navarro has called Vietnam a "colony of China," saying that one third of Vietnamese products are in fact relabelled Chinese goods.
Trump said that "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," he said.
"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."
The president said he believed US-made SUVs, "which do so well in the United States, will be a wonderful addition to the various product lines within Vietnam."
In a government statement, Vietnam confirmed that negotiating teams had come to an agreement to address the reciprocal tariff issue, but did not detail any tariff terms.
Trump "affirmed that the US will significantly reduce reciprocal taxes for many Vietnamese export goods and will continue to cooperate with Vietnam in resolving difficulties affecting bilateral trade relations, especially in areas prioritized by both sides," the statement said.
Trump's announcement comes a week before the threatened US reimposition of steep tariffs on dozens of economies, including the European Union and Japan, many of which are still scrambling to reach deals that would protect them from the measures.
Those higher tariffs are part of a package Trump initially imposed in April, citing a lack of "reciprocity" in trading relationships, before announcing a temporary lowering to 10 percent.
Without a deal, Vietnam's "reciprocal tariff" would have risen from the baseline 10 percent to 46 percent.
Since April, Washington had so far only announced a pact with Britain and a deal to temporarily lower retaliatory duties with China.
Both involve the United States maintaining some of Trump's tariffs on the trading partners.
The terms of the UK deal are more narrowly focused than those announced by Trump with Vietnam, with London and Washington agreeing to cut US tariffs on cars from 27.5 percent to 10 percent, with a limit of 100,000 vehicles a year.
It also fully eliminated the 10 percent tariff on goods such as engines and aircraft parts.
In return, Britain agreed to further open its market to US ethanol and beef. US President Donald Trump says Vietnam is taking the unprecedented step of giving exports from the United States 'total access' to the Asian country's markets AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
14 minutes ago
- Int'l Business Times
'Stop Production': Small US Firms Battered By Shifting Tariffs
When US President Donald Trump announced tariffs on almost all trading partners in April, Ben Knepler contacted the factory in Cambodia producing his company's outdoor furniture. "Stop production," he ordered. The announcement involved a 10-percent levy on imports from most partners, set to rise further for many of them. For Cambodia, the planned duty was a staggering 49 percent. "That night, we spoke to our factory," Knepler told AFP. "We literally cannot afford to bring our own product into the US with that kind of tariff." The decision was even more painful for Knepler and his Pennsylvania-based company, True Places, given that he had previously shifted production of his outdoor chairs to Cambodia from China, following tariffs on Chinese imports imposed by Trump during his first presidency. "We were facing 25-percent tariffs in China, and there were zero-percent tariffs in Cambodia," Knepler recalled. It took him a year to move the massive equipment and molds to Cambodia only to see another steep levy. With Trump's "reciprocal" tariff hikes taking effect last Thursday, these Cambodia-made chairs face a lower -- though still significant -- 19 percent duty. Knepler's experience echoes that of many US companies producing everything from yo-yos to clothing abroad, after years of offshoring American manufacturing. To cope, businesses use various strategies. Some pass on the new costs as a surcharge to customers. Others halted imports when duties reached prohibitive levels, hoping Trump would strike bilateral trade deals that would make their businesses viable again. Trump frames his tariffs as paid for by other countries, touting tens of billions in revenue this year -- but firms contest this description. "We make the tariff payments when the product comes into the US," Knepler stressed. "Before we sell it, we're the ones who pay that tariff." Now saddled with hundreds of thousands of dollars in debt he took on to relocate the company's production to Cambodia, Knepler worries if his business will survive. He likens the rapid policy changes to spinning a "wheel of misfortune," resulting in a new tariff each time. Over four months this year, the planned tariff rate on Cambodian exports has gone from 0 to 49 percent, to 10 percent, to 36 percent, to 19 percent, he said. "No one knows what it's going to be tomorrow," he added. "It's impossible to have any kind of confidence in what the rate will be in three- or four-months' time." Economists warn that tariffs could fuel inflation and drag on growth. EY chief economist Gregory Daco noted that the duties effective Thursday raise the average tariff rate to 17.6 percent from 2.8 percent at the start of the year --- the highest level since the early 1930s. While Trump lauds the limited effects his duties have had on US prices so far, experts say tariffs take time to filter through to consumers. Many of Trump's sweeping levies also face legal challenges over his use of emergency economic powers. The global tariffs are especially hard to avoid. Barton O'Brien said he accelerated production and borrowed money to bring in as much inventory as possible before Trump took office. On the election campaign trail, the Republican leader had floated a 60-percent tariff on imports from China, where O'Brien makes most of his products. The Maryland-based veteran selling dog harnesses and other accessories rented a container to ship as many products as he could before Trump's new tariffs would take effect. "I had dog life jackets in the bathroom," he told AFP. There is "no way" to produce domestically, he said, adding that comparable American-made products sell for nearly six times his retail prices. He makes some items too in India and Vietnam. But Chinese products face an additional 30-percent duty this year, even under an extended truce now expiring in November. The rates for India and Vietnam are 25 percent and 20 percent respectively. "If you look at the brands I compete with, we're all made in the same countries. We're all going to have to raise prices together," said O'Brien. US companies producing everything from yo-yos to clothing abroad are coping with a variety of strategies AFP
Int'l Business Times
2 hours ago
- Int'l Business Times
'Not Welcome': English Town Protests Against JD Vance's Holiday
Dozens of activists and locals protested on Tuesday against a visit by US Vice President JD Vance to an idyllic rural region of southwest England, where he is on holiday with family. Around 60 people gathered for the demonstration in the town of Charlbury in the Cotswolds region, carrying signs including "Go Home", "Not Welcome Party" and "Sod Off". UK police and US security detail dotted the usually quiet roads leading to the nearby hamlet where Vance was staying, blocking some roads and footpaths in the countryside region popular with tourists. "The people of the Cotswolds are out here today telling JD Vance that he is not welcome here," Jake Atkinson from the Stop Trump Coalition told AFP at the gathering. Co-organiser Atkinson cited US President Donald Trump's policies including on immigration and the war in Gaza for the local anger. He said the anti-Trump coalition would also turn out against the US president, who is due in the UK for a state visit in September. Earlier in the day, a black van bearing a meme image of Vance edited to look bald and bloated drove past the quaint cottages and winding streets of the town. "We wanted to extend the same welcome that he extended to (Volodymyr) Zelensky from the White House," said 75-year-old Charlbury resident Lou Johnson, referring to the cold reception Vance gave the Ukrainian leader during a press conference in Washington in February. Vance kicked off his British holiday last week by meeting UK Foreign Secretary David Lammy, who hosted the American politician in his country retreat in Chevening in Kent, southeast of London. Reports have also said Vance will later visit Scotland, where Trump spent five days at his golf resorts last month. Residents said they were surprised by the heavy security around Dean, the village where Vance was staying. "If somebody's just in the Cotswolds on holiday, you wouldn't imagine they'd need a 20-car motorcade and all the roads to the entire village," said Phil Ball, 53, a local resident and cameraman. "It's been disruptive and quite a surprise." Victoria Dawson, an artist from nearby Witney, said locals were protesting "against somebody who we think is immoral... somebody who is doing terrific damage around the world along with Trump". "Because JD Vance is here, suddenly roads are closed everywhere, there are police everywhere," she added. "It's not what we expect or accept." Lou Johnson also complained that heightened security had been "invading everywhere" in the rural area he has called home for 50 years. "People think it's just a gentle little village but every now and then we do stand up for what we believe in," said Johnson. Locals from the countryside region popular with tourists were surprised by the heavy security AFP
Int'l Business Times
2 hours ago
- Int'l Business Times
Washingtonians Tired Of Crime But Skeptical Of Trump Takeover
A 15-minute walk from the White House, Tony and Mike stood on the sidewalk near the spot where a man was killed on Monday, the 100th murder of the year in Washington. The shooting broke out just a few hours after President Donald Trump announced a federal takeover of the US capital, which Trump described as overrun by crime -- though official data shows that violence has recently decreased. "It's sickening," Tony told AFP early Tuesday. "It's not safe anymore." "You do need change, you do need help," Mike said. But Mike added that the city does not need the help Trump is sending in -- "not National Guards." The day after Trump's press conference, residents of the area near the city center told stories of drug sales on the street, but were skeptical that federal intervention would make a difference. Tony has always lived in the area and, like the other residents interviewed, did not want to give his last name. He described a local street corner as an "open air market" with "all the drugs that you want." Anne, who was holding pruning shears as she weeded, said needles are often discovered in the flowerbed of the church on the corner. It was near this spot that Tymark Wells, 33, was shot around 7:00 pm Monday before later dying in hospital, according to a police report that did not mention a motive or suspect. The area is the "wild wild West and it's always been like that," said Lauren, who lives in a building nearby. "We're so desensitized," the 42-year-old added. When Trump announced his DC plan, he said it was "becoming a situation of complete and total lawlessness." However the Department of Justice said in January that violent crime in Washington recently hit its lowest level in 30 years. Because of easy access to guns in the United States, the crime number still "may look differently in America than it does in other parts of the world," Brianne Nadeau, a member of DC's overwhelmingly Democratic city council, told AFP. "But we have made substantial strides here," she said, calling Trump's federal takeover a "political stunt." The annual number of homicides in the city peaked at 274 in 2023, before falling to 187 last year. That is still one of the highest per capita homicide rates in the country. Trump also justified the takeover by citing the number of homeless people in the city. Ace, a 16-year-old walking her dog, said the presence of the homeless contributed to the feeling of insecurity. Sometimes unhoused people would get on top of her parents' car, she said. "You don't know if they are going to break in." While waiting for the National Guard, around 850 federal agents were deployed to Washington on Monday, making 23 arrests, according to White House Press Secretary Karoline Leavitt. "This is only the beginning," she said. Terry Cole, head of the Drug Enforcement Administration tasked with leading the federal takeover of the city's police, said patrolling would be ramped up. Federal agents and police will work "hand in hand" during these patrols, Cole added. The city's Democratic Mayor Muriel Bowser, who has been forced to accommodate the takeover, said this approach is "the wrong way to do it." Federal agents do not go out on patrol, she said. "That's not what they're trained to do." Tom, who lives near the scene of Monday's shooting, told AFP there were not enough police patrols in the area. But he also criticized Trump's "draconian approach," saying it was unlikely to "yield any good results." Across the street, a small memorial stood in tribute to a different shooting victim. A picture of a young Black man has been wrapped around a tree, with flowers arrayed at its base. Turell Delonte, 30, was shot dead by police at the spot in 2023, after he was suspected of drug trafficking.
