President Trump announced a trade deal with Vietnam that avoids steep new tariffs. Vietnam will eliminate all tariffs on U.S. goods, while the U.S. will impose a 20% tariff on Vietnamese exports and a 40% tariff on transshipped goods, reports Bloomberg. The deal aims to open Vietnam’s market to U.S. products and curb trade fraud. Vietnam also pledged to purchase more American goods, including $3 billion in agricultural products. They write:
President Donald Trump said he had reached a trade deal with Vietnam following weeks of intense diplomacy between the nations and ahead of a deadline next week that would have seen higher tariffs imposed on the country’s imports.
A 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods deemed to be transshipped through the country, Trump said in a social-media post on Wednesday. Trump said that Vietnam had agreed to drop all levies on US imports. […]
The deal with Vietnam would be just the third announced following agreements with the UK and China, as trading partners race to cut agreements with the US ahead of a July 9 deadline. […]
Vietnam offered to remove all tariffs and repeatedly promised to purchase more American goods. Senior Vietnamese officials flew to the US to rally support and sign deals, including for $3 billion of agricultural goods. The trade minister also wooed executives from Nike, Gap and others to encourage them to get behind negotiation efforts.
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