President Donald Trump announced Wednesday that the United States has concluded a new bilateral trade agreement with Vietnam, establishing a two-tiered tariff system for Vietnamese exports and duty-free access for U.S. goods entering the Vietnamese market.
Under the terms announced by the President in a Truth Social post, Vietnamese goods entering the U.S. will be subject to a 20% tariff, while goods identified as transshipped through Vietnam—primarily from China—will face a 40% tariff. In exchange, Vietnam has agreed to eliminate all tariffs on U.S. exports, giving what Mr. Trump described as “TOTAL ACCESS” to the Vietnamese market.
The deal follows concerns in Washington over the rapid growth of the U.S. trade deficit with Vietnam and allegations that Chinese goods have been re-routed through Vietnam to evade existing U.S. tariffs. “This will be a Great Deal of Cooperation between our two Countries,” the President said, following discussions with Vietnamese General Secretary To Lam. Mr. Trump also expressed optimism that the agreement would boost U.S. automotive exports, particularly SUVs.
Despite the high-profile announcement, trade experts have flagged several key uncertainties regarding implementation and scope. Wendy Cutler, Vice President at the Asia Society and a former U.S. trade negotiator, notes that without a published text, it remains unclear whether the 20% and 40% tariffs are final or subject to further negotiation on rules of origin. “Will the ten percent tariff remain in place in the meantime?” she asked.
It is also unclear whether Vietnam’s commitment to zero tariffs on U.S. goods includes all products or whether there will be carve-outs, staging timelines, or exemptions. Cutler further questioned whether the U.S. made any concessions in return, including movement on Vietnam’s longstanding request to be treated as a market economy in trade remedy cases.
No specific timeline has been released for entry into force. It remains uncertain whether certain provisions—such as tariff adjustments—will be implemented immediately or staggered pending further negotiation.
The deal is only the third bilateral agreement concluded since the White House paused reciprocal tariffs for a 90-day period ending July 9. Negotiations are ongoing with the European Union and India. Mr. Trump has indicated that talks with Japan are unlikely to yield a deal.
The 40% transshipment tariff is expected to draw scrutiny from China, which may interpret the provision as an indirect trade barrier. Analysts also questioned whether the deal includes broader economic security provisions, such as commitments on export controls, investment screening, or digital trade barriers.
Cutler also raised questions about whether the deal with Vietnam will serve as a model for similar agreements across Southeast Asia, particularly regarding the standardization of a 20% base tariff.
The White House has not yet released the full text of the agreement.
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