By John Meyer, consultant in financial affairs – Eurasia Business News, July 2, 2025. Article no. 1592.

The United States and Vietnam have reached a preliminary trade agreement that pauses the previously threatened 46% tariff on Vietnamese imports to the U.S., replacing it with a 20% tariff on Vietnamese goods and a 40% tariff on goods suspected of being transshipped through Vietnam to evade U.S. tariffs. This framework deal was announced by President Donald Trump on July 2, ahead of the July 9 deadline when the 90-day suspension on the higher tariffs would have expired.

Key points of the agreement include:

  • The U.S. will maintain a 20% tariff on imports from Vietnam, down from the initially proposed 46%.
  • A 40% tariff will apply to goods identified as transshipped, targeting Chinese products routed through Vietnam to circumvent U.S. tariffs.
  • Vietnam has committed to opening its market to a broader range of U.S. products, including those previously restricted, allowing American goods to enter Vietnam at zero tariffs.
  • Both countries agreed on a “reciprocal, fair, and balanced” trade framework, with Vietnam expected to curb the flow of Chinese goods exported through its territory to the U.S.

While the deal represents a significant step in easing trade tensions, many details remain to be finalized as negotiations continue. Vietnam has not yet officially confirmed the agreement, and the specifics of market access and enforcement mechanisms are still being worked out.

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This agreement is part of a broader U.S. initiative to revise tariffs with multiple trading partners and comes after Trump temporarily paused the steep tariffs he announced in April 2025 due to market concerns. Vietnam is a major trading partner of the U.S., ranking as the sixth-largest source of imports valued at $137 billion in 2024, making this deal economically significant for both nations.

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In summary, the U.S.-Vietnam trade deal sets a 20% tariff on Vietnamese imports, a 40% tariff on suspected transshipped goods, and includes commitments from Vietnam to open its market to U.S. products tariff-free, marking a tentative but important step toward resolving ongoing trade disputes.

The U.S. and the European Union are reportedly close to reaching a deal on various non-tariff trade issues. These include regulations related to deforestation, the treatment of U.S. technology companies under EU rules such as the Digital Markets Act, carbon-based border tariffs, and shipbuilding, among others.

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Vietnam has reaffirmed its ambitious economic growth target of 8 percent or higher for 2025 despite significant challenges posed by U.S. tariff policies. Prime Minister Pham Minh Chinh emphasized the government’s commitment to this goal amid the impact of tariff imposed by the United States on Vietnamese exports, which threatens the country’s export-reliant economy and global supply chains.

In an attempt to attract more skilled professionals and investors, Vietnam has announced it will introduce a new 10-year golden visa program. The Southeast Asian country is looking to attract long-term residents, investors and tech professionals from around the world.

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© Copyright 2025 – Eurasia Business News. Article no. 1592.