On July 2, 2025, at 8:00 PM Vietnam time, General Secretary Tô Lâm held a high-level phone call with U.S. President Donald Trump. The discussion centered on finalizing a reciprocal trade agreement and marked a breakthrough in the US Vietnam trade tariff negotiations. Both leaders endorsed a framework designed to foster fair, balanced, and transparent trade between the two nations. For more information, you might also want to read about Vietnam US trade talk
Key Outcomes of the Dialogue
The two leaders expressed strong satisfaction with the progress in U.S.–Vietnam relations. They welcomed the successful conclusion of a joint statement on a Reciprocal, Fair, and Balanced Trade Agreement.
President Trump emphasized Vietnam’s commitment to providing preferential market access for U.S. goods, especially large-engine automobiles. In return, the United States agreed to significantly reduce reciprocal tariffs on many Vietnamese exports, easing the burden of the previously proposed 46% blanket tariff under his trade protection plan.
Details of the US Vietnam Trade Tariff Deal
On Truth Social, President Trump declared:
“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 give the United States TOTAL ACCESS to their Markets for Trade… at ZERO Tariff.”
This deal signals a major change in the US Vietnam trade tariff framework. For the first time, Vietnam will allow full tariff-free access for U.S. exports, benefiting automobiles, agriculture, and high-tech sectors.
The agreement also targets transshipment practices. Goods rerouted through Vietnam from third countries will face a 40% tariff, ensuring both nations uphold transparent, rules-based trade.
Vietnam’s Strategic Requests
General Secretary Tô Lâm proposed two important measures:
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Official recognition of Vietnam as a market economy to eliminate non-market status penalties and reduce anti-dumping duties.
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Removal of U.S. export restrictions on high-tech items, enabling Vietnam to pursue advanced manufacturing and innovation goals.
Both leaders also agreed to expand cooperation in science, technology, and regular high-level exchanges. President Trump accepted an invitation to visit Vietnam.
Implications for Global Trade
The deal came just before the expiration of a 90-day tariff reprieve. Without an agreement, Vietnamese exports faced a 46% tariff reinstatement. Now, with a 20% tariff in place and potential exemptions for select industries, exporters gain much-needed clarity.
Markets responded positively. The S&P 500 rose on optimism that the US Vietnam trade tariff settlement would ease tensions. However, some sectors—such as apparel and electronics—may still face challenges from the 20% rate. Companies will need to reassess cost structures and sourcing strategies.
What This Means for VNO Clients
For Vietnam Outsourcing Pte Ltd (VNO) and its global partners, this trade agreement delivers several advantages:
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Reduced Tariff Risk: The elimination of the 46% tariff protects competitiveness for Vietnamese-made components, assemblies, and metal parts.
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Supply Chain Stability: The agreement provides predictability, improving procurement planning and risk management.
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Improved U.S. Market Access: Reciprocal treatment may accelerate customs clearance and reduce compliance barriers for VNO exports.
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Policy Alignment for Growth: Vietnam’s push for market economy recognition would strengthen long-term prospects in advanced manufacturing.
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Strategic Edge: With stricter scrutiny on Chinese transshipment, certified Vietnamese suppliers like VNO provide U.S. and EU buyers with a compliant and secure alternative.
Bottom line: this deal reaffirms Vietnam’s position as a reliable manufacturing hub and enhances VNO’s role as a trusted bridge between Western clients and Vietnamese engineering suppliers.
Conclusion: A Turning Point in US Vietnam Trade Tariff Relations
The new US Vietnam trade tariff deal represents a milestone in bilateral ties. With Vietnam opening its market and the U.S. easing tariff pressure, both economies benefit from greater trade stability and expanded opportunities.
For businesses, the agreement means more predictable costs, stronger supply chains, and deeper confidence in Vietnam as a long-term partner. For Vietnam, it signals entry into a new chapter of global economic leadership. More insight can be found at Compliance & Supply Chain in Vietnam.
