WASHINGTON/HANOI: The United States and Vietnam struck a trade agreement that sets 20% tariffs on many of the Southeast Asian country’s exports following last minute negotiations, US President Donald Trump and Vietnamese state media said on Wednesday.
The rate is lower than an initial 46% levy Trump announced in April on goods from Vietnam which was due to take effect next week.
Trump said that goods from Vietnam would face a 20% tariff and that any trans-shipments from third countries would face a 40% levy. Details were scarce and it was not immediately clear how the trans-shipment provision would be implemented.
Vietnam would also provide the United States with more market access, with US exports to the country facing no tariffs, Trump said. That agreement appears to include US exporters of large-engine cars, according to Trump and Vietnamese state media.
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam,” Trump said on Truth Social.
“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,” Trump said.
Vietnamese President To Lam asked in a phone call with Trump earlier on Wednesday that the United States recognize Vietnam as a market economy and remove restrictions on the exports of high-tech products to the country, Vietnam News Agency reported. Those changes have long been sought by Hanoi and dismissed by Washington.