Trump announces deal with Vietnam, includes 20% import tariff rate

“It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping.”

The Trump administration’s broad “reciprocal” tariff plan announced April 2 on about 90 U.S. trade partners included a baseline 10% duty rate on almost all goods, as well as 25% tariffs on certain imported vehicles and auto parts.

Trump paused the reciprocal tariffs on imports from most countries for 90 days on April 9, but kept a 10% baseline import tax in place for almost all U.S. trading partners, including Vietnam.

The general tariff rate against goods from Vietnam to the U.S. will now increase from 10% to 20% under the deal announced Wednesday. Tariffs are taxes on imports that are charged to businesses bringing products into a country.

As part of the new deal, Vietnam will give the U.S. access to its markets with no tariff rate, Trump said.

Related: US, China agree on deal for tariffs, rare-earth magnets

Vietnam is currently the seventh largest U.S. trading partner, totaling $149.6 billion in two-way commerce in 2024, according to the U.S. Trade Representative. Imports from Vietnam to the U.S. totaled $136.6 billion last year.

The U.S. primarily imports goods like apparel, electrical machinery, and footwear from Vietnam. Top exports from the U.S. to Vietnam include raw cotton, integrated circuits, and telecommunications equipment.

On Tuesday, Trump said that he is not considering extending the pause for countries that the U.S. has been unable to negotiate trade deals with.

“No, I’m not thinking about the pause,” Trump said Tuesday to reporters aboard Air Force One, according to Bloomberg. “I’ll be writing letters to a lot of countries.”

The Trump administration has announced trade deals with the United Kingdom and China —  though neither agreements have been finalized.