Pressure for trade deals is mounting as the temporary reduction of Trump’s reciprocal tariffs is set to end in a matter of days.
U.S. President Donald Trump announced a trade deal with Vietnam.
The temporary reduction of Trump’s reciprocal tariffs is set to end next week.
The agreement has left other countries wondering what deals and tariffs could look like for them in the future.
Global attention turned to Vietnam on Thursday, after U.S. President Donald Trump announced a trade deal with Hanoi just days before Washington’s reciprocal tariffs come back in full force.
Under the agreement, the U.S. will apply a 20% duty on Vietnamese imports — sharply below the 46% rate Trump had imposed in early April. U.S. imports to Vietnam will meanwhile not be subject to tariffs.
Trump also said that Vietnam had agreed to a 40% duty on any products that originally came from another country, but were sent to Vietnam for final shipment to the U.S. China has reportedly repeatedly relied on this practice, known as transshipping, to avoid trade barriers.
Vietnam is one of the few countries that has struck a trade deal with the White House, while the clock ticks down on Trump’s 90-day temporary reprieve. Many nations have been left wondering how the future of their trade relationship with the world’s largest economy could shape up.
