a day ago
Trump announces trade deal with Vietnam; says deal with Japan unlikely
President Donald Trump on Wednesday announced a trade deal with Vietnam, under which Vietnamese imports to the United States will be subject to a 20% tariff while the United States will have tariff-free access to Vietnamse markets. Photo by Yuri Gripas/UPI | License Photo
July 2 (UPI) -- President Donald Trump on Wednesday announced a trade deal with Vietnam a day after he said a similar deal with Japan is unlikely.
Trump announced on his Truth Social social media platform that the deal will see Vietnam pay a 20% tariff on "any and all goods" imported to the United States, while the United States will be granted tariff-free trade with Vietnamese markets.
"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," Trump wrote. "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."
Under the deal, Vietnam will also pay a 40% tariff on goods that are transshipped, meaning they originated in another country and were then sent to Japan before being ultimately shipped to the United States.
Trump credited the deal as the result of a meeting with To Lam, general secretary of the Vietnamese Communist Party.
"Dealing with General Secretary To lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!" Trump wrote.
The deal comes after Trump said Tuesday that trade negotiations with Japan aren't going well and called the country "spoiled."
"We've dealt with Japan. I'm not sure if we're gonna make a deal, I doubt it, with Japan," he told reporters on Air Force One on Tuesday. "They and others are so spoiled from having ripped us off for 30, 40 years that it's really hard for them to make a deal."
The 90-day pause on tariffs ends July 9. Trade partners are scrambling to get trade deals with the U.S. Japan's tariff rate was 24% beginning April 2, when Trump launched his tariff assault.
On social media Monday, Trump said Japan refuses to buy American rice, despite a shortage in the country.
"They won't take our RICE, and yet they have a massive rice shortage. In other words, we'll just be sending them a letter, and we love having them as a Trading Partner for many years to come," he said in a post on Truth Social.
Japan bought $298 million of rice from the United States last year, according to the U.S. Census Bureau. This year, Japan has spent $114 million on American rice.
He said it again on Tuesday, adding a claim about auto imports.
"They need rice so badly, but they won't take rice," he said. "We didn't give them one car in 10 years."
But Japan imported 16,707 units of American vehicles last year, according to the Japan Automobile Importers Association..
Both sides vowed to continue talks.
"We dealt with Japan. I'm not sure if we're going to make a deal. I doubt it with Japan - they're very tough. You have to understand, they're spoiled. I love Japan. I really like the new prime minister, too. Abe was one of my closest friends, as you know," he said on Tuesday. Former Japanese prime minister Shinzo Abe died in 2022.
Japan's Deputy Chief Cabinet Secretary Kazuhiko Aoki said, "Japan will continue to engage vigorously in sincere and honest discussions toward the realization of an agreement that will benefit both Japan and the United States."
Prime Minister Shigeru Ishiba and Ryosei Akazawa, his close aide and Japan's top tariff negotiator, stressed that the government will not rush a deal at the expense of the country's interests. They emphasized protecting the agricultural sector.
Trump said if talks break down: "What I'm going to do is, I'll write them a letter to say, 'We thank you very much, and we know you can't do the kind of things that we need, and therefore you pay a 30%, 35% or whatever the number is that we determine,'" Trump said.
