Ho Chi Minh City — The United States has signed a trade deal with Vietnam, signaling a tougher global tariff environment as President Donald Trump’s 90-day tariff reprieve nears its end.
Under the new terms, the U.S. will impose a 20% duty on imports from Vietnam, far lower than the previous 46%, while Vietnam will not tax U.S. goods. However, any third-country goods rerouted through Vietnam for U.S. shipment will face a steep 40% tariff, targeting transshipment practices often linked to China.
Economists say this agreement may set the tone for future deals. While some countries may negotiate better rates, others with weak leverage could face harsher terms.
Vietnam, highly dependent on U.S. trade, had little room to push back. “Other countries may now push for lower than 20% rates,” said Mark Williams of Capital Economics.
Analysts expect more deals with emerging economies, but also caution that the higher-than-expected tariff could hurt regional exporters like Thailand and Malaysia.
Meanwhile, Europe may struggle to strike similar agreements. Talks between the U.S. and EU have seen little progress due to disagreements over digital taxes, big tech regulation, and proposed 50% U.S. tariffs.
