U.S. President Donald Trump announced on Wednesday a major trade deal with Vietnam as the July 9 deadline looms. Under the new arrangement, Vietnam will face a 20% tariff on its exports to the U.S., while a steep 40% tariff will hit products that are transshipped—meaning if another country uses Vietnam as a trading conduit, they get the higher duty. U.S. Commerce Secretary Howard Lutnick explained the transshipping rule, helping clarify the move.
In a bold twist, Trump declared that U.S. products can now enter the Vietnam market with zero tariffs. He captured the moment on Truth Social, stating, "Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade." This fresh change follows earlier measures when a 46% duty was imposed on Vietnam, later reduced to 10% to allow for further negotiations.
For anyone new to trade lingo, tariffs are fees imposed on goods crossing borders—a key tool in shaping trade dynamics. With Vietnam exporting nearly $137 billion worth of goods to the U.S. in 2024, and acting as a vital hub for textiles and sportswear from brands like Nike, Gap, and Lululemon, this deal could significantly shift global market flows. Stay tuned as these developments potentially reshape the business landscape worldwide! 🚀
Reference(s):
cgtn.com
