Trump Reaches Trade Deal with Vietnam; 40% Tariff to Apply to China and Other Countries

Former U.S. President Donald Trump announced a trade agreement with Vietnam, under which Vietnam will face a 20% tariff on goods exported to the U.S., while Chinese and other affected countries will be hit with a 40% tariff. This is part of Trump’s plan to redirect supply chains away from China.

Key Points:

• Trump stated that goods produced in Vietnam using Chinese components could still face tariffs when entering the U.S.
• The tariffs aim to protect U.S. manufacturing and encourage local sourcing.
• Currently, no other countries face the newly proposed 40% tariffs.
• Vietnam is a key exporter of U.S.-bound goods like furniture, apparel, and footwear. U.S. imports from Vietnam reached $137 billion in 2024.
• Companies like Nike, GAP, and Lululemon could be impacted, as they heavily rely on Vietnam for production.
• In May, U.S. imports from Vietnam fell 3.9% YoY, while exports rose 2.9%.

***Photo Reference:https://www.foxbusiness.com/politics/trump-announces-vietnam-trade-deal-says-us-given-total-access-markets ***