U.S. and Vietnam Announce Trade Deal to Reduce Tariffs and Expand Market Access

Washington, D.C. – July 2, 2025 – The United States and Vietnam have reached a new trade agreement that will reduce tariffs on Vietnamese exports to the U.S. and open Vietnamese markets to American goods, President Donald Trump announced Wednesday. The deal comes just days before a July 9 deadline, when a previously announced 46% tariff on Vietnamese imports was set to take effect.

Under the terms of the agreement, the U.S. will impose a 20% tariff on Vietnamese exports, significantly lower than the threatened rate. In addition, any goods “transshipped” through Vietnam—primarily targeting products originating from China—will face a 40% tariff. In exchange, Vietnam has agreed to allow U.S. products into its market at a zero percent tariff, a move expected to benefit American exporters, particularly in the apparel, footwear, and agricultural sectors.

President Trump announced the deal on social media following discussions with To Lam, the general secretary of the Communist Party of Vietnam. He described the agreement as a breakthrough that will “OPEN THEIR MARKET TO THE UNITED STATES,” and emphasized its potential to strengthen economic ties and stabilize global supply chains.

The agreement is seen as a strategic move to address concerns over transshipment, where Chinese goods are routed through Vietnam to avoid U.S. tariffs. The new rules are designed to prevent such practices by imposing higher duties on products with significant Chinese content.

Vietnam is the United States’ sixth-largest source of imported goods, with trade valued at $137 billion last year—more than double the amount five years ago. The announcement led to a surge in shares of global apparel and footwear companies, reflecting optimism about improved trade stability and access to the Vietnamese market.

While the U.S. has confirmed the deal, Vietnamese officials have not yet issued a public statement on the agreement. Full details of the implementation and product-specific tariff rates are expected to be released in the coming days.

This deal marks the third trade pact the Trump administration has brokered with a foreign nation in the past three months, as the U.S. continues to renegotiate trade relationships with key partners ahead of the July 9 tariff deadline.