Trump announces tariff deal with Vietnam

U.S. President Donald Trump announced on Wednesday that the U.S. had reached a trade deal with Vietnam as the July 9 deadline is looming.

Under the deal, Trump said, Vietnam will face a 20-percent tariff for its exports to the U.S. and a 40-percent tariff for "transshipping." U.S. Commerce Secretary Howard Lutnick said the "transshipping" tariff means "if another country sells their content through products exported by Vietnam to us - they'll get hit with a 40-percent tariff."

Trump also said U.S. products could enter Vietnam market with a zero percent tariff.

"Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade," Trump wrote in a Truth Social post. "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 had imposed a 46-percent duty on Vietnam as part of his so-called "reciprocal tariffs" in early April, then pared it back to 10 percent to allow time for negotiations.

Vietnam exported almost $137 billion worth of goods to the U.S. in 2024, making it the sixth-biggest supplier of U.S. imports, according to Census Bureau data. It's a major supplier of textiles and sportswear, hosting factories for companies such as Nike Inc, Gap Inc and Lululemon Athletica Inc.