Trump announces trade agreement with Vietnam, shocked by 0% tax rate

President Donald Trump has announced a trade deal with Vietnam, imposing a 20% tariff on imports from the Southeast Asian country, just a week before a July 9 deadline when higher tariffs could be imposed.

Trump announced on the social network Truth Social that he had reached a trade agreement with Vietnam after a phone call with General Secretary To Lam . According to the published terms:

A 20% import tax will be applied to all goods from Vietnam entering the US.

40% tax on "transshipping" goods - that is, goods from other countries (mainly China) that are transported through Vietnam before being exported to the US

Vietnam agrees to fully open its market to US goods with 0% tax rate

The 20% tariff is significantly lower than the 46% rate Trump initially planned to impose in April as part of his 'Liberation Day' policy. Vietnam initially faced a 46% retaliatory tariff that could take effect as early as next week.

Impact on the market

Shares of the world's largest apparel and footwear companies surged after Trump announced details of the deal. Shares of Vietnam-dependent companies like Nike, Lululemon and Columbia Sportswear all surged after Trump announced the deal.

Vietnam had a trade surplus with the US of $12.2 billion in May, up nearly 42% from a year earlier. Vietnam has benefited from Trump’s high tariffs on Chinese goods, which have prompted many companies to shift production to Vietnam. More than half of Vietnam’s imports are electronics and apparel, according to the US International Trade Commission.

Trump said SUVs or large vehicles would be a great addition to the product lines in Vietnam, hinting at the potential for US auto exports to the Vietnamese market.

The deal marks the third trade deal the Trump administration has reached ahead of the July 9 deadline, following deals with China and the U.K. However, it remains unclear whether the deal has been formally signed or when it will take effect.

Source: https://baodanang.vn/ong-trump-publicly-announces-trade-agreement-with-viet-nam-soc-voi-muc-thue-0-3264803.html