President Donald Trump announced Wednesday that the United States has reached a new trade agreement with Vietnam.
The deal opens up the Southeast Asian nation’s market to American producers while imposing steep tariffs on Vietnamese imports.
In a post on Truth Social, Trump wrote:
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam.”
The deal arrives just ahead of a July 9 deadline, when Trump’s 90-day pause on new foreign tariffs was set to expire.
Had no agreement been reached, Vietnamese goods would have been hit with a 46% tariff.
Under the terms of the agreement, American exports to Vietnam will now enjoy full tariff-free access, according to the president.
In return, the U.S. will impose a 20% tariff on all Vietnamese goods and a 40% tariff on transshipped goods.
Transshipped products are rerouted through Vietnam from countries like China to avoid trade restrictions.
Trump said he hopes the deal will especially benefit U.S. automakers.
“It is my opinion that the SUV … which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,” Trump wrote.
The trade imbalance between the two countries has long been a sticking point.
In 2024, U.S. exports to Vietnam totaled $13.1 billion, while Vietnamese imports reached $136.6 billion, according to the Office of the United States Trade Representative.
The deal with Vietnam marks the latest success in Trump’s aggressive push to reshape global trade.
Last month, the president secured a major agreement with China, culminating in a new tariff framework under which Chinese goods face a 55% import tax.
Meanwhile, U.S. exports to China face just a 10% tariff.
The China deal also included provisions allowing Chinese students to study at American universities and committed China to supplying rare earth minerals essential for U.S. technology manufacturing.
In a separate agreement reached weeks ago, Trump negotiated a wide-ranging trade pact with the United Kingdom.
That deal, signed with newly elected British Prime Minister Keir Starmer, grants billions in market access to American firms and imposes a 10% tariff on the first 10,000 British-made vehicles imported into the U.S.
All additional UK-made vehicles will face a 25% tariff.
Trump also recently walked away from negotiations with Canada over its proposed digital tax targeting American tech companies.
In response, Canadian Prime Minister Mark Carney scrapped the plan in an apparent effort to restore diplomatic and economic ties with Washington.
With the Vietnam deal now finalized, Trump has once again signaled that his administration intends to leverage America’s economic power to enforce fairer trade terms and rebalance decades of U.S. trade deficits.
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