Donald Trump just made official another big trade deal. This free trade deal will deepen economic ties between the United States and the Socialist Republic of Vietnam. Trump personally negotiated the deal over a very cordial lunch at the Mar-a-Lago Club with To Lam, the General Secretary of Vietnam’s Communist Party. He called the meeting “an absolute pleasure” before breaking the news. This story becomes a new chapter in U.S.-Vietnam cooperation, bringing significant benefits to both countries.
This trade agreement will give Vietnam full access to U.S. markets. In exchange, the US has benefited from tariff-free access to Vietnam’s rapidly growing markets. Vietnam is scheduled to introduce a 20% tariff on its exports to the U.S. This amendment would be a dramatic cut from the previous aggregate and essentially tariff of 46% on all imports from Vietnam. Furthermore, Vietnam would face a 40% tariff on goods that are transshipped through its territory into the U.S.
In his announcement on Truth Social about the move, Trump touted the new lower tariff rates. He says that these changes will strengthen collaboration between the two countries. He touted American SUVs as a “wonderful addition” to the Vietnamese product palate. That’s an unmistakable signal of a deep openness to American automotive exports.
The timing of the announcement is critical. It was released only days before a 90-day expiration for many of Trump’s duplicate tariffs was set to expire. The timing was fortuitous with the deadline to submit proposals approaching. The expiration would have resulted in U.S. duties on imports from most countries soaring. This further underscores just how important this trade deal is to ensuring we don’t start losing those good trade conditions.
Trump’s administration has been keen on this agreement to deepen trade connections. It seeks to improve diplomatic relations between the U.S. and Vietnam. The agreement eliminates tariffs to Vietnam for all U.S. products. This step will protect American corporate interests and provide Vietnamese consumers greater access to American products and services.