Trump says he will put 20% tariff on Vietnam, cooling tensions

Published: 2025-07-03 02:56:14 ET NKE

Published on 07/03/2025 at 02:56

STORY: It could spell relief for companies like Nike.

Donald Trump says he will put 20% tariffs on Vietnam's exports to the U.S.

That was lower than expected, meaning it may be good news for firms like the sportswear giant, which makes many of its goods in the country.

Trump announced the news in a social media post on Wednesday (July 2).

And it comes just days before his July 9 deadline for countries to strike trade deals.

Vietnam had faced a 46% tariff from that day without the new agreement.

However, details of the pact were in short supply.

It wasn't immediately clear which products the 20% rate would apply to, or whether some goods could face lower or higher duties.

The Vietnamese government offered no such details in a statement celebrating what it called a trade framework.

But it said it would commit to providing preferential access for U.S. goods in return, including for large-engined cars.

Under the deal, trans-shipments from third countries through Vietnam will still face a 40% levy.

That's aimed at products largely made in China, but then labeled as "made in Vietnam".

But one trade expert told Reuters that "trans-shipping" was an ill-defined term, subject to a lot of interpretation.

Talks with Vietnam had been closely watched, with the country a fast-growing export powerhouse.

Since 2018 its shipments to the U.S. have nearly trebled, from less than $50 billion that year, to $137 billion in 2024.

Attention now turns to other possible deals.

Trump has said he's optimistic about agreement with India, but expressed doubts over any deal with Japan.

By contrast, U.S. exports to the country have risen only 30% over the same period.