President Donald Trump said Wednesday that the U.S. would impose a 20% tariff on Vietnamese imports based on a new trade deal reached in the last minute negotiations.
Products sent to the U.S. from Vietnam face a 46% tax that will take effect next week as part of the so-called “reciprocity” tariff he announced in April.
Dozens of other economies, including the European Union and Japan, are still scrambling to reach deals with the United States before plans to increase.
Trump said in a social media post that Vietnam will not impose tariffs on U.S. products under the agreement.
Tariffs are taxes on import taxes, which are almost always paid by companies that buy goods rather than produce products.
Although importers can decide to absorb additional fees, they often choose to pass it on to consumers.
As Trump has said, in “large amount of cooperation,” the United States will also impose a steep tariff of 40% on goods passing through Vietnam in a process known as “cross-shooting.”
Peter Navarro, senior Trump adviser to trade and manufacturing, claimed that one-third of all exports Vietnam exported to the United States were actually Chinese products shipped through Vietnam.
The president said on social media: “Vietnam will do something they have never done before, bringing the United States of America into its trade markets completely.
“In other words, they will be open to the US, which means we will be able to sell products to Vietnam with zero tariffs.”
Vietnam has become the main manufacturing center for many major brands such as Nike, Apple, Gap and Lululemon. This is the beneficiary of the company that moved the factory out of China to avoid tariffs announced by Trump during his term.
The shares of Vietnamese companies that produce goods initially rose, although these gains were pruned after the products that appeared and would face a 20% tax.
Trump and Vietnamese General Secretary Lin held a phone call on Wednesday, during which he reiterated his invitation to visit the U.S. president.
In addition, the Trump family recently announced projects in Vietnam.
The government approved a plan by the Trump Organization and local business Kinh Bac City Development to invest $1.5 billion in hotels, golf courses and luxury real estate.
The Trump Organization is also scouting the location where the Trump Tower was built in Ho Chi Minh City.
Trump initially imposed huge taxes on global trading partners in April, citing a lack of “reciprocity”, but then announced a pause, and they all lowered it to 10%.
According to the White House, many countries then negotiated with the United States.
Since April, Washington has so far announced only a deal with the UK and temporarily reduced its retaliatory responsibilities against China.
Health & Wellness Contributor
A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
