US President Donald Trump said on Wednesday that a trade agreement has been finalized with Vietnam after weeks of high-level negotiations to prevent increased tariffs on Vietnamese goods.
“I just made a Trade Deal with Vietnam. Details to follow,” Trump posted on Truth Social.
The deal is the third of its kind recently signed by the US, after it made similar deals with the United Kingdom and China. The agreements precede a pivotal July 9 deadline, when increased tariffs were to be imposed.
In April, Trump proposed a 46% tariff on Vietnamese products under his “reciprocal tariffs” program, later cutting it to 10% to leave room for negotiations. The Southeast Asian nation, now a major manufacturing base, has watched its exports to the US soar as firms relocate from China. Vietnam was the sixth-largest source of US imports in 2024, exporting goods worth close to $137 billion, the US Census Bureau reports.
The agreement was reached after US pressure to step up action against trade fraud, improve enforcement of transshipping Chinese products, and the removal of non-tariff barriers. In exchange, Vietnam pledged to eliminate all tariffs and boost imports of American goods. Senior Vietnamese leaders also signed agreements worth $3 billion in farm purchases and secured backing from leading brands like Nike, Gap, and Lululemon firms with big manufacturing bases in Vietnam.
Vietnam’s increasing trade surplus with the United States, the third-highest after China and Mexico, put it right in Trump’s tariff sights. On the eve of July 9, Vietnamese shipments accelerated, with May exports rising 35% as companies pushed to beat anticipated fines.
The new agreement is likely to deepen US-Vietnam trade ties while defusing tensions regarding the increasing trade deficit.
