Trump Announces US-Vietnam Trade Deal

Vietnam was previously hit with a 46% tariff as part of Trump’s "Liberation Day" reciprocal tariff announcements.

The Office of the United States Trade Representative said "U.S. goods trade with Vietnam totaled an estimated $149.6 billion in 2024" and "U.S. goods exports to Vietnam in 2024 were $13.1 billion, up 32.9 percent ($3.2 billion) from 2023."

"U.S. goods imports from Vietnam totaled $136.6 billion in 2024, up 19.3 percent ($22.1 billion) from 2023. The U.S. goods trade deficit with Vietnam was $123.5 billion in 2024, an 18.1 percent increase ($18.9 billion) over 2023," it added.

The Southeast Asian nation has been caught in a delicate balancing act as it tries to preserve trade with the U.S., its largest export market and a security partner, while not antagonizing China, which serves as a top source of investment and a neighbor.

At the meeting, trade ministry and customs officials were told to tighten controls and were given two weeks to devise a plan to clamp down on illicit transshipment, which is when one country sends goods to a nation facing lower tariffs from a third country, to which the product is re-exported without having value added.

Many of the goods exported by Vietnam to the West have Chinese-made inputs, and Chinese companies have also established factories in the country to serve U.S. customers. In many instances, Vietnamese workers process the goods, which are then legally shipped to the U.S. under a "Made in Vietnam" label.

U.S. officials have alleged that China uses Vietnam as a conduit to obtain lower tariffs for goods that do not have significant Vietnamese involvement.