Summary
- On 2 April 2025, President Trump announced reciprocal tariffs on more than 180 countries including Vietnam.
- Vietnam was among the most exposed countries with reciprocal tariffs at 46%.
- On 9 April 2025, the U.S. put a 90-day pause on reciprocal tariffs, applying the temporary rate of 10% for all countries, except for China.
- After several rounds of negotiations, Vietnam, together with China and the UK are among the few countries that reached a new trade deal with the U.S. before the 9 July deadline. However, the official deals and the effective dates have not been announced yet.
- In this new trade deal agreement, Vietnam enjoys 20% tariff on all goods of Vietnamese origin, and 40% tariff on transhipping activities while the U.S. is granted full access to the Vietnamese market without any tariff.
- Among the Southeast Asian economies, Vietnam has the highest share of exports to the U.S., accounting for c.5% —twice as much as the second-highest exporter, Thailand.
- The current deal is seen as a win for Vietnam, as Vietnam currently enjoys a lower tariffs compared to other SEA / exporting countries.
- On 7 July 2025, 90-day suspension (due to expire 09 July) of additional reciprocal tariff was extended to 01 August.
