Vietnam dodges US Tariff with a last-minute deal
- GMCCTradeteam
- Jul 14
- 1 min read
Updated: Jul 15
With just days left before President Trump’s “reciprocal tariffs” pause expires, Vietnam has struck a surprise trade deal with the US, narrowly avoiding a punishing 46% tariff on its exports. Instead, Vietnamese goods will face a 20% levy - still significant, but a marked reduction. In return, Vietnam has agreed to scrap all tariffs on US exports.
Trump hailed it as a “Great Deal of Cooperation,” touting full, zero-tariff access to Vietnamese markets - a first, he claims. But the agreement goes further: it introduces strict enforcement on “trans-shipping,” the controversial practice of routing Chinese goods through Vietnam to bypass tariffs. Any goods flagged as such will face a 40% US tariff.
White House advisor Peter Navarro alleged that up to a third of Vietnam’s US-bound exports are Chinese in origin - though verifying that will be politically and logistically complex.
Markets initially cheered the news, with shares of Vietnam-linked manufacturers like Apple and Nike rising briefly before slipping as the reality of a 20% tariff set in.
Adam Sitkoff of the American Chamber of Commerce in Hanoi called the deal “a good position for Vietnam,” but warned that trans-shipping enforcement remains murky.
This is the third deal of its kind since Trump’s April tariff push, following temporary pacts with the UK and China. Other nations - including Japan and the EU - are now racing to cut similar deals before the tariff pause ends on July 9th.
Trump’s message is clear: make a deal, or face the consequences.
If you are interested in learning more about Trade Agreements, then check out the below:
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