Trump: The Terms are that Vietnam will pay the United States a 20% Tariff

President Trump announced Wednesday that the United States has reached a trade agreement with Vietnam, establishing a 20% tariff on Vietnamese goods.

As part of the deal, Vietnam will grant the U.S. full market access with zero tariffs, while the U.S. will apply a 40% tariff on goods manufactured in other countries with higher import taxes but routed through Vietnam before entering the U.S.

“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,” Trump wrote on Truth Social. “It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade.”

He continued: “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure.”

Trump shared news of the deal just days ahead of the expiration of a pause on reciprocal tariffs.

Vietnam is a major exporter of goods to the U.S., including clothing, footwear, and electrical equipment. In 2024, the U.S. imported more than $136 billion in goods from Vietnam and exported just over $13 billion, leaving a trade deficit of over $123 billion, according to data from the U.S. Trade Representative.

The White House and Treasury Department have not yet issued a response to the announcement.