US strikes deal with Vietnam before trade deadline
Trump unveiled the terms on social media on Wednesday. He said the Southeast Asian country is willing to open its market in a way it has "never done before."
He said all Vietnamese goods will face a 20 percent levy. It remains unclear if the earlier 10 percent global tariff is included in that figure. But the rate is much lower than a total of 46 percent the country faced in April.
He also warned he will tax goods from other countries transited through Vietnam at 40 percent. US Media report the move is aimed at cracking down on Chinese products being routed through the country.
In return, he said Vietnam has agreed to give the US "total access" to its markets, and lower tariffs on American goods.
According to data from US Department of Commerce, Vietnam has the fourth-largest trade deficit with the US, right behind Mexico, the European Union and China.
With the deadline closing in, the UK remains the only country that has officially signed an agreement.
Washington is still negotiating with China, and the Financial Times reports that India may clinch a provisional trade agreement as soon as this week.
Trump has also been ramping up the pressure on Tokyo. He said he is frustrated with the status of negotiations and has threatened to slap a rate as high as 30 to 35 percent on Japan.
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