The United States will impose a 20 percent tariff on Vietnamese imports under a new trade agreement, down from an initially planned 46 percent rate set to take effect next week. The move is part of President Donald Trump’s “reciprocal tariff” policy launched in April aimed at pressuring trade partners into reducing barriers against U.S. goods.
Trump announced the decision Wednesday, claiming the deal grants the U.S. “total access” to Vietnamese markets while Vietnam agreed not to impose retaliatory tariffs. White House trade adviser Peter Navarro noted that a significant share of Vietnamese exports to the U.S. are actually Chinese products redirected through Vietnam, framing the measure as a strategic response to trade circumvention.
The deal underscores the shifting U.S. trade posture toward Southeast Asia, with broader implications for regional economies like the Philippines. As Washington leverages bilateral pressure for market access, Manila may face increased urgency to recalibrate its trade strategy to avoid potential tariff risks and capitalize on new export opportunities.
Major economies including the EU and Japan are still negotiating their own agreements with the U.S., signaling broader realignments in global trade flows amid intensifying tariff diplomacy.
