President Donald Trump has announced a new trade deal with Vietnam, which he says will level the playing field for American workers and crack down on unfair trade practices. Posting on Truth Social, Trump revealed that the agreement imposes a 20% tariff on Vietnamese imports to the U.S., while granting American goods tariff-free access to Vietnam’s markets — a win, he says, that puts America first.
In a tough stance against transshipping — when goods from countries like China are rerouted through Vietnam to dodge tariffs — the deal slaps a steep 40% duty on any products that didn’t truly originate in Vietnam. The move directly targets China’s backdoor attempts to skirt Trump’s trade barriers and protects U.S. manufacturers from unfair competition.
This bold move comes just days before Trump’s 90-day tariff pause was set to expire, which would have reinstated tariffs on Vietnamese imports at 46%. Instead, the new 20% rate strikes a middle ground, providing American industries with protection while still pressuring foreign suppliers to play fairly.
Critics argue that tariffs raise prices for U.S. consumers. Still, Trump’s team points out that the billions these tariffs generate for the country can be reinvested in American jobs and infrastructure. Despite the noise, markets reacted calmly, with the S&P 500 ticking up on the news.
Vietnam, whose exports to the U.S. make up a massive slice of its economy, can’t afford to lose access to American consumers. The Trump administration says this proves his tough trade tactics are effective, bringing countries to the table and protecting American industries from unfair global practices.
As the tariff pause deadline nears, the Trump team hints more trade wins could be on the way — all part of putting America’s interests first.