President Donald Trump on Wednesday announced a new trade agreement with Vietnam that he says will give the U.S. total access to Vietnamese markets — while slapping tariffs as high as 40% on Vietnamese exports.
Calling it a “Great Deal of Cooperation,” Trump said he personally negotiated the agreement with To Lam, the “Highly Respected General Secretary of the Communist Party of Vietnam.” The deal marks a major shift in U.S.-Vietnam trade relations.
Under the terms, Vietnam will pay a 20% tariff on all goods shipped to the U.S., and a steep 40% tariff on any transshipped goods. In return, American products will enter Vietnam duty-free for the first time ever, according to Trump.
“This is the first time the United States will have full access to Vietnam’s trade and markets,” Trump said in his statement, adding that American-made SUVs would be a “wonderful addition” to Vietnam’s product offerings.
The deal follows months of negotiation, including a call in April where Lam reportedly expressed willingness to eliminate tariffs altogether. Trump hinted at a future in-person meeting with the Vietnamese leader.
The Vietnam agreement is part of a broader trade push by Trump. He recently touted a “historic agreement” with the United Kingdom and is still navigating ongoing trade talks with China, which acknowledged progress in their current framework, per Bloomberg.
But not all nations are getting on board. Trump abruptly ended trade talks with Canada on Friday and vowed to announce new tariffs on Canadian goods by next week. “We are hereby terminating all discussions on trade with Canada, effective immediately,” Trump said.
As the July 9 deadline for pending trade agreements approaches, Trump warned that any country without a deal in place will face a 50% tariff. “Hundreds of billions of dollars in tariffs are filling up the coffers of Treasury,” he said.