President Trump just announced a 20% tariff on Vietnamese imports, following some intense eleventh-hour negotiations. That’s actually a let-off from the originally planned 46% rate, which was due to kick in next week under his “reciprocal tariffs” push from April. If you’re running operations out of Vietnam, that’s a bit of relief but not a free pass.
Globally, the EU, Japan, and others are now scrambling to strike their own deals with the US before similar hikes hit their exports.
On the flip side, Vietnam is dropping tariffs on US goods entirely. Trump highlighted this in a social media post, touting “TOTAL ACCESS” for American businesses to Vietnamese markets. Translation: US exporters can now sell into Vietnam without facing any tariffs. That’s a win if you’re looking to expand your Asia-Pacific sales channels.
Now, let’s talk impact. Tariffs are essentially import taxes usually, the buyer (the importer) pays up, not the exporter. Businesses can either absorb that extra cost or pass it along to customers. More often than not, consumers end up footing the bill, which could dampen demand for Vietnamese goods in the US market. That’s got plenty of US trading partners watching nervously.
The deal also introduces a steep 40% tariff on goods “trans-shipped” through Vietnam products that are just passing through, often to circumvent existing penalties. Peter Navarro, Trump’s trade adviser, claims that up to a third of what Vietnam ships to the US is actually Chinese-made, just rerouted to dodge tariffs. This new measure is meant to curb that loophole.
Trump went all-in on social, promising that Vietnam will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning American companies get zero-tariff access. For sectors like tech, apparel, and consumer brands, this could open the door to more direct sales in Vietnam.
Vietnam has become a major production hub for global brands Nike, Apple, Gap, Lululemon all moved manufacturing there to sidestep US-China trade tensions. When news of this deal broke, shares of firms operating in Vietnam jumped, though initial gains cooled once the 20% tariff details became clear.
Adam Sitkoff from the American Chamber of Commerce in Hanoi told BBC he’s generally optimistic, saying US-bound trade from Vietnam isn’t going anywhere. Still, he flagged concerns about the fuzziness around “trans-shipping” it’s a gray area, and he doubts enforcement will be airtight.
On the diplomatic front, Vietnam’s General Secretary To Lam called Trump, reaffirming an invitation to visit. Meanwhile, the Trump Organization just inked a $1.5 billion deal with a local partner for hotels, golf courses, and luxury real estate, plus they’re eyeing a Trump Tower in Ho Chi Minh City.
To recap: Trump’s April tariffs shook the global trade landscape, prompting countries to rush for new deals. So far, only the UK and China have managed to secure agreements. Now Vietnam’s in the spotlight navigating new tariffs, but also getting fresh access to the US market.
The bottom line? US-Vietnam trade just got a shakeup. For companies sourcing or selling across the Pacific, it’s time to rethink supply chains and pricing strategies. The game’s changed again.