By Reuters and published by CNA
Washington – United States President Donald Trump said on Wednesday (July 2) that the US has struck a trade deal with Vietnam, after months of negotiations, that imposes a 20 percent tariff rate on many imports from the Southeast Asian country.
The rate is lower than the initial 46 percent levy Trump announced in April on goods from Vietnam, largely as a result of its big trade surplus with Washington.
“It is my Great Honour to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,” Trump said on Truth Social.
Trump said that goods from Vietnam would face a 20 percent tariff and that any transshipments from third countries would face a 40 percent levy.
Vietnam would also provide the US with more market access, with US exports to the country facing no tariffs, he said.
“It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the US, will be a wonderful addition to the various product lines within Vietnam,” Trump said.
The White House and the Vietnamese trade ministry did not immediately respond to a request for comment.
Shares of apparel makers rose on news of deal
Shares of Nike and other apparel makers rose on Wednesday after President Trump said he had struck a trade deal with Vietnam.
The agreement means some goods would be subjected to a 20 percent tariff instead of an even bigger 46 percent levy threatened by Trump. Ralph Lauren gained 0.9 percent, and Gap and Lululemon Athletica both won 0.5 percent.
Apparel makers have been diversifying production out of China to Cambodia, Indonesia and Vietnam, even as concerns were raised over tariffs increasing supply chain costs and higher product prices.
Trump’s on-again, off-again tariff policy has also forced companies to withdraw or cut financial targets.
“The tariff dance has clearly been a dominant focus point for retailers and investors, with its uncertainty perhaps creating greater problems than its actual severity,” BMO Capital Markets analyst Simeon Siegel said.
Vietnam accounted for over half of all athletic footwear imports by volume and value in 2024, and Trump’s agreement with the Southeast Asian country would still hit the footwear industry hard, said Matt Priest, CEO of trade group Footwear Distributors and Retailers of America.
“Many of these shoes already carry a 20 percent tariff, particularly popular athletic styles. Piling new tariffs on top of that isn’t just unnecessary – it’s bad economics. The administration should acknowledge the steep footwear duties already in place and avoid adding more strain to American families and businesses,” Priest said.
CAPTIONS:
Top: A container ship is seen near the Hai Phong International Container Terminal in Hai Phong, Vietnam, on Apr. 16, 2025. File photo: Reuters/Athit Perawongmetha and published by CNA
Insert: US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, on Apr. 2, 2025. File photo: Reuters/Carlos Barria and published by CNA
Front Page: US President Donald Trump makes an announcement about a trade deal with the UK, in the Oval Office at the White House in Washington, DC, on May 8, 2025. File photo: Reuters/Leah Millis and published by CNA
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