HANOI, Vietnam — President Donald Trump announced a new trade deal with Vietnam as part of ongoing tariff negotiations with various countries. This announcement comes just days before a self-imposed deadline for these discussions. In a recent social media post, Trump detailed the tariffs, stating they would be set at 20% on goods imported from Vietnam and 40% on products transiting through the country. However, experts note that while the president claims that Vietnam will bear these costs, U.S. businesses importing these goods will ultimately be responsible for the tariffs.
In his statement, Trump claimed that Vietnam would provide the U.S. with “TOTAL ACCESS” to its markets, allowing American products to enter Vietnam without any tariffs. He highlighted sport utility vehicles as a key focus of this expanded trade, suggesting a significant increase in exports. As of now, the White House has yet to furnish specific details regarding this agreement.
This announcement follows Trump’s previous proposal in April to impose a considerable 46% tariff on Vietnamese imports, marking one of the highest potential rates on any nation. Although this proposal was later moderated to a temporary 10% tariff described as a “pause,” it reflects ongoing concerns about the U.S. trade deficit with Vietnam.
U.S.-Vietnam trade relations have evolved significantly since the U.S. lifted its economic embargo on Vietnam in 1994, leading to the normalization of diplomatic ties a year later. In 2001, a bilateral trade agreement granted Vietnam most-favored-nation status, facilitating its entry into the World Trade Organization. Over the following two decades, trade volume between the two nations surged, projected to reach $149.6 billion by 2024, marking a nearly fifty-fold increase since 2002.
In 2023, the partnership between the U.S. and Vietnam was elevated to a “comprehensive strategic partnership,” showcasing the strengthening ties that have contributed to Vietnam’s economic development. The U.S. now stands as Vietnam’s largest export market, making up nearly one-third of the country’s total exports. Products such as machinery, appliances, apparel, and footwear dominate Vietnam’s exports to the American market.
Despite this burgeoning trade, Washington has expressed concerns about the significant trade imbalance in favor of Vietnam. The U.S. trade deficit with the nation reached over $123.5 billion in 2024, with $39.1 billion recorded in the first quarter of 2025. Consequently, U.S. officials have called on Vietnam to address non-trade barriers, combat fraudulent practices, and reduce illegal transshipments. They are also urging Vietnam to further liberalize its market for American goods and services.
As Vietnam aims for an ambitious 8% growth rate by 2025, analysts warn that reciprocal tariffs of 20% or higher could jeopardize this goal. A recent report, supported by the Asian Development Bank, suggests that these tariffs could complicate efforts to sustain economic momentum, emphasizing the fragile balance in these evolving trade relationships.