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Calgary Herald

Trump announces Vietnam trade deal with 20% import tariff

Article content The S&P 500 rose after Trump's post, with shares in furniture stocks and apparel makers recording gains. ON Holding, Nike and Lululemon all jumped to hit session highs. Article content Some U.S. officials wanted to calibrate tariffs for Vietnam and others in Southeast Asia to ensure they're sufficiently lower than what's imposed on China, to encourage production to leave that country. Article content The higher 40 per cent rate announced Wednesday would be imposed on goods deemed to be 'transshipping' — where components from China and possibly other nations are routed through Vietnam or subject to only minimal final assembly before being exported to the U.S. Article content That's been a major concern for Trump's top trade advisers, including Peter Navarro, who described Vietnam as 'essentially a colony of communist China' during an April interview with Fox News. Article content Full details of what goods would be subject to that higher rate were not immediately available. Article content Article content U.S. exports to Vietnam were worth just US$15 billion last year. Trump touted the prospect of a boost in auto sales as a result of the deal. Article content '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,' he wrote on Truth Social. Article content Although Trump shared the broad contours of the agreement, the White House has not yet released a term sheet or published any kind of proclamation codifying the arrangement. And some of the details could still be in development. The U.S. and U.K. first announced their own trade deal in early May, but it wasn't until mid-June that Trump signed an executive order implementing the accord. And even then, key details have been set aside to be addressed later. Article content While Trump and his team initially envisioned holding concurrent negotiations with dozens of trading partners, the president and his advisers have suggested in recent weeks that they will just focus talks with major economies and unilaterally issue levies on smaller countries or those that don't reach agreements. Article content Article content The deal with Vietnam was struck after weeks of discussions during which the U.S. pressured the country to get tougher on trade fraud, ensure stricter enforcement against the transshipment of Chinese products, and also pushed for the removal of non-tariff barriers. Article content Vietnam offered to remove all tariffs and repeatedly promised to purchase more American goods. Senior Vietnamese officials flew to the U.S. to rally support and sign deals, including for US$3 billion of agricultural goods. The trade minister also wooed executives from Nike, Gap and others to encourage them to get behind negotiation efforts. Article content Officials in the country also touted the Trump Organization's plans to develop a $1.5 billion luxury resort complex, a project that will feature five-star hotels, golf courses and residential estates spanning more than 990 hectares.