U.S. President Donald Trump announced a new trade agreement with Vietnam on Wednesday, slashing import tariffs to 20% after last-minute negotiations. The deal comes just days before a planned 46% tariff hike was set to take effect as part of Trump’s global trade plan introduced in April.
Under the agreement, Vietnam will not impose tariffs on American goods, while the U.S. will implement a special 40% tariff on goods rerouted through Vietnam in a practice known as “transshipment,” aimed at avoiding trade rules.
Trump emphasized that the agreement grants the U.S. “FULL ACCESS” to Vietnamese markets, marking a historic shift in economic relations between the two countries.
The new deal follows similar efforts with the U.K. and a temporary truce with China, as Washington seeks reciprocal and strategic trade partnerships under Trump’s “America First” doctrine.
This agreement signals Trump’s return to hardline economic diplomacy, using tariff threats as leverage. For Vietnam, it’s a calculated concession to avoid trade penalties while preserving vital U.S. ties. For the U.S., full market access is a strategic win, not only economically but also in positioning itself strongly against China’s influence in Southeast Asia. Trump’s tactics show a blend of assertive negotiation and long-term strategic planning.
Source: Official White House statement & Donald Trump via Truth Social