President Trump just dropped a bombshell trade deal with Vietnam, shaking up the economic landscape as a critical deadline looms.
According to Inc.com, announced on Wednesday, this agreement grants American goods tariff-free access to Vietnam’s markets while imposing significant duties on Vietnamese imports to the U.S., all just days before a 90-day tariff pause expires on July 8.
Let’s rewind to April, when Trump’s “Liberation Day” unleashed a wave of tariffs on multiple countries, many facing double-digit rates.
Vietnam was staring down a punishing 46% duty on its imports to the U.S. if no deal materialized.
That threat loomed large as the tariff pause—dubbed “reciprocal tariffs” by Trump—neared its July 8 expiration.
The president could still extend this deadline to bolster ongoing trade talks, but no confirmation has surfaced yet.
Under the new pact, American products will flow into Vietnam without tariffs—a major win for U.S. exporters.
In exchange, Vietnam faces a "20% tariff" on all its imports to the U.S., with a steeper 40% duty on transshipped goods, often items from places like China routed through Vietnam.
The U.S. primarily imports machinery, textiles, and footwear from Vietnam, so these tariffs could hit consumers’ wallets on everyday goods.
One big question remains: when will these new tariffs on Vietnam kick in?
The timeline is murky, leaving businesses and investors in limbo as they brace for potential cost hikes. Trump’s social media post on Truth Social boasted, “Vietnam will do something unprecedented, granting TOTAL ACCESS to their markets.”
This deal isn’t happening in isolation—back in early May, the U.S. inked a trade agreement with the United Kingdom, where the U.K. accepted a 10% blanket tariff on imports.
The U.K. ran a roughly $106 billion trade surplus with the U.S. last year, making that deal a significant recalibration.
More agreements might be on the horizon, with Trump and Treasury Secretary Scott Bessent hinting at a potential U.S.-India trade pact next week.