Latest news with #GreatDealofCooperation
Fibre2Fashion
3 hours ago
- Business
- Fibre2Fashion
Trump announces new US-Vietnam trade deal
Announcing a new US trade deal with Vietnam yesterday, President Donald Trump said that the former will charge 20-per cent tariffs on imports from the latter. Vietnam will charge no tariffs on US products under the agreement, Trump said in a social media post. Announcing a new US trade deal with Vietnam, President Donald Trump has said that the former will charge 20-per cent tariffs on imports from the latter, while Vietnam will charge no tariffs on US goods. The 20-per cent is double the current minimum tariff rate the US is charging on Vietnamese goods. The US will impose a 40-per cent tariff on goods that pass through Vietnam via 'trans-shipping'. Earlier products exported from Vietnam to the United States had faced a 46-per cent tariff rate, which was set to go into effect next week. The 20-per cent tariff the United States will impose is double the current minimum tariff rate it is charging on goods from Vietnam and almost every other country. Terming the agreement a 'Great Deal of Cooperation', Trump said the United States will also impose a steeper tariff of 40 per cent on goods that pass through Vietnam via 'trans-shipping'. "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. "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," he added. Trump's senior counsellor on trade and manufacturing Peter Navarro has said that a third of all Vietnamese exports to the United States were actually Chinese products. A state-run news outlet in Vietnam reported that General Secretary To Lam and Trump had a telephonic conversation yesterday to patch up the terms of the deal. Fibre2Fashion News Desk (DS)
Business Times
7 hours ago
- Automotive
- Business Times
Vietnam catches a break as Trump slashes tariff threat
[HO CHI MINH CITY] Vietnam may have scored a win. A new trade deal announced by US President Donald Trump on Wednesday (Jul 2) highlights warmer ties and potentially better terms for the South-east Asian nation which has positioned itself as a cooperative partner amid rising trade tensions. But the actual details and their impact will depend on further clarity and how the US handles tariffs on other countries in the region. For now, Vietnam appears to have dodged the worst as the earlier proposed tariff of 46 per cent has been trimmed to 20 per cent – still considered steep but clearly a step down. 'It is clear that Vietnam remains among the most responsive and cooperative counterparts in US trade negotiations,' noted Tyler Nguyen, chief market strategist at Ho Chi Minh City Securities Corporation (HSC). 'No other regional peers have finalised deals or published tariff terms yet. Whether Vietnam's 20 per cent deal is relatively strong remains an open question,' he added. Under the 'Great Deal of Cooperation', as it called by Trump on Truth Social, the US will cut the tariff on imports from Vietnam to 20 per cent, with transhipped goods subject to a higher rate of 40 per cent. Details on sector-specific or foreign-content-based tariffs have yet to be released. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In return, the US will gain tariff-free access to the Vietnam market, with Trump highlighting opportunities for sport utility vehicles – the type of large engine car that 'does so well in the US'. This came a week before the previously announced rate of 46 per cent on Vietnam was set to take effect from the baseline 10 per cent, which could have significantly undermined the country's competitiveness as a regional production and investment hub, especially since other export competitors, excluding China, faced substantially lower tariffs. 'The blueprint from Vietnam sets the stage for forthcoming deals with the other Asean countries,' OCBC analysts wrote in a note on Jul 3. '(However,) at this point, deals look staggered and there is a risk that countries such as Thailand could miss the Jul 9 deadline.' In a phone call on Jul 2, prior to the deal announcement, Trump committed to 'significantly reduce' reciprocal tariffs on many Vietnamese goods, according to the Hanoi government. During the call, Vietnam's Communist Party Chief To Lam also urged Washington to recognise Vietnam as a market economy and to lift export restrictions on certain high-tech products. Looming challenges Given the new trade deal design, analysts warn of long-term challenges for domestic agricultural producers and automotive manufacturers in Vietnam, who must compete with a possible influx of duty-free US imports. Near-term risks include a slowdown in foreign direct investment (FDI) inflows due to reduced transhipment activity that had previously been used to bypass trade barriers. In the first five months of this year, FDI pledges into the country hit US$18.39 billion, marking a 51.2 per cent surge from last year's figure. Mainland China remained the largest source of new FDI projects with 453 projects, 2.5 times higher year-on-year, totalling US$1.8 billion. 'Overall, we are inclined to think that plain diversion makes up only a minority of Vietnam's exports,' noted Michael Wan, senior economist at Mitsubishi UFJ Financial Group. 'If there is a stricter determination of transhipment defined as a certain threshold of foreign value added, the impact of these 40 per cent tariffs may be pronounced,' he added, noting that Vietnam still remains dependent on China for intermediate input. Vietnam as 'great negotiator' During the 90-day suspension on the US' punitive reciprocal tariffs, Vietnam – which Trump described in April as a 'great negotiator' – has moved swiftly to manage mounting pressure from Washington while trying to preserve its trade competitiveness and geopolitical neutrality. Even prior to the Apr 2 tariff blow, Vietnam had made a number of pre-emptive concessions, including cuts to tariffs on certain US goods, along with efforts to boost procurement of American goods and services. In between the two phone calls of the two countries' top leaders, Hanoi has participated in a total of three rounds of direct negotiations with Washington to secure a trade deal, alongside multiple virtual calls at the technical level. In response to Washington's concerns over transhipment and trade imbalances – which reached US$123.5 billion in 2024 as the the third-largest US trade deficit after China and Mexico – Vietnam's export powerhouse has taken concrete steps, including tightening origin regulations, increasing dealmaking with US companies, and facilitating major investments such as SpaceX's Starlink satellite Internet service and a Trump-backed golf resort. Meanwhile, it has also intensified economic engagement with other major powers, including joining Brics in June as a partner country and signing new infrastructure and supply chain deals with China during President Xi Jinping's April visit. HSC's Nguyen expects the Vietnamese government to continue negotiations with the US to improve the tariff policy over time and have 'plans in place to stay on track with its growth targets', which include at least 8 per cent gross domestic product expansion this year and a double-digit level in the following five years. 'The situation is difficult, certainly not hopeless, but it will require strong policy responses and resilience,' he added.
Al Etihad
9 hours ago
- Business
- Al Etihad
Asian stocks mixed as traders shrug at US-Vietnam trade deal
3 July 2025 08:14 HONG KONG (AFP) Stocks struggled in Asia on Thursday as investors gave a lukewarm reception to the US-Vietnam trade deal, while the dollar eased ahead of key US jobs data that could impact the Federal Reserve's interest rate was also on Washington as Republicans struggled to push Donald Trump's tax-slashing budget bill through the House of Representatives amid warnings it would inflate an already ballooning national the Vietnam agreement provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40 per cent for certain less than a week left until the US president's July 9 deadline to hammer out pacts to avoid his "reciprocal" levies, just three countries have done so - stoking worries his "Liberation Day" measures will kick in and spark fresh market a post on his Truth Social platform, Trump wrote: "It is my Great Honour 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."He said that under the "Great Deal of Cooperation", imports of Vietnamese goods will face a 20 per cent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers -- so-called "transshipping" -- will see a 40 per cent news means Hanoi will avoid paying the 46 per cent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still traders were unimpressed, with the Vietnamese capital's stock market down in early trade.A third record close in four days for Wall Street's S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Shanghai, Tokyo, Sydney and Wellington all Seoul, Taipei, Manila and Jakarta edged said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the Korean President Lee Jae Myung said Thursday his administration was doing its "utmost" to secure an agreement. However, he warned that "it's certainly not easy, that much is clear. And to be honest, I can't say with confidence that we'll be able to wrap everything up" by the deadline. The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting."Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 per cent," said National Australia Bank's Taylor Nugent."It would take more than that to dent (policy board) members' comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook."Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump's "Big, Beautiful Bill" that cuts taxes as well as spending on programmes such as analysis suggests it will add $3 trillion to the already colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy. Key figures at around 0230 GMT Tokyo - Nikkei 225: DOWN 0.1 per cent at 39,732.63 (break)Hong Kong - Hang Seng Index: DOWN 1.1 per cent at 23,948.73Shanghai - Composite: DOWN 0.1 per cent at 3,450.80Euro/Dollar: UP at $1.1808 from $1.1801 on WednesdayPound/Dollar: UP at $1.3650 from $1.3634Dollar/Yen: DOWN at 143.58 Yen from 143.65 YenEuro/Pound: DOWN at 86.50 Pence from 86.52 PenceWest Texas Intermediate: DOWN 0.9 per cent at $66.85 per barrelBrent North Sea Crude: DOWN 0.9 per cent at $68.48 per barrelNew York - Dow: FLAT at 44,484.42 (close) London - FTSE 100: DOWN 0.1 per cent at 8,774.69 (close)
France 24
10 hours ago
- Business
- France 24
Asian stocks mixed as traders shrug at US-Vietnam trade deal
Attention was also on Washington as Republicans struggled to push Donald Trump's tax-slashing budget bill through the House of Representatives amid warnings it will inflate an already ballooning national debt. While the Vietnam agreement provided hope that other governments can reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40 percent for certain exports. With less than a week left until the US president's July 9 deadline to hammer out pacts to avoid his "reciprocal" levies, just three countries have done so -- stoking worries his "Liberation Day" measures will kick in and spark fresh market turmoil. In a post on his Truth Social platform, Trump wrote: "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." 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. The news means Hanoi will avoid paying the 46 percent tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge. Hanoi traders were unimpressed, with the Vietnamese capital's stock market down in early trade. A third record close in four days for Wall Street's S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Shanghai, Tokyo, Sydney and Wellington all falling. Singapore, Seoul, Taipei, Manila and Jakarta edged up. Trump said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the pipeline. South Korean President Lee Jae Myung said Thursday his administration was doing its "utmost" to secure an agreement. However, he warned that "it's certainly not easy, that much is clear. And to be honest, I can't say with confidence that we'll be able to wrap everything up" by the deadline. The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening. The reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide policy. Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting. "Payrolls is the focus (Thursday), where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3 percent," said National Australia Bank's Taylor Nugent. "It would take more than that to dent (policy board) members' comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook." Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump's "Big, Beautiful Bill" that cuts taxes as well as spending on programmes such as Medicaid. Independent analysis suggests it will add $3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy. Key figures at around 0230 GMT Tokyo - Nikkei 225: DOWN 0.1 percent at 39,732.63 (break) Hong Kong - Hang Seng Index: DOWN 1.1 percent at 23,948.73 Shanghai - Composite: DOWN 0.1 percent at 3,450.80 Euro/dollar: UP at $1.1808 from $1.1801 on Wednesday Pound/dollar: UP at $1.3650 from $1.3634 Dollar/yen: DOWN at 143.58 yen from 143.65 yen Euro/pound: DOWN at 86.50 pence from 86.52 pence Brent North Sea Crude: DOWN 0.9 percent at $68.48 per barrel
Iraqi News
10 hours ago
- Business
- Iraqi News
Trump says Vietnam to face 20% tariff under ‘great' deal
Washington – President Donald Trump announced Wednesday that he had struck a trade deal with Vietnam under which the country would face a minimum 20 percent tariff and open its market to US products. 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. – 'Total Access' – 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.
