by Worthy News Washington D.C. Bureau Staff
(Worthy News) – President Donald Trump announced a sweeping new trade agreement with Vietnam on Wednesday that imposes steep tariffs on imports but grants the U.S. full access to Vietnamese markets–a move Trump hailed as a “Great Deal of Cooperation” and a major breakthrough in ongoing global trade negotiations.
Under the terms of the deal, the U.S. will impose a 20% tariff on all Vietnamese imports–less than half the 46% rate originally proposed in April. Additionally, goods “transshipped” through Vietnam, a practice the Trump administration has long criticized as a Chinese backdoor to evade tariffs, will face a 40% tariff.
“In return,” Trump wrote on Truth Social, “Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade… at ZERO Tariff.” He specifically noted the opportunity for American-made sport utility vehicles and large-engine cars to gain a foothold in Vietnam’s growing market.
Vietnamese General Secretary To Lam, whom Trump described as “highly respected,” confirmed Vietnam’s commitment to opening markets and providing preferential access for U.S. goods. Trump said the negotiations with Lam were “an absolute pleasure.”
The deal arrives just days before a July 8 deadline for nations to finalize trade agreements with the U.S. or face new tariffs. The president had previously delayed the implementation of a sweeping tariff increase–dubbed “Liberation Day” levies–announced in April, giving countries a 90-day window to reach individual deals.
So far, only the United Kingdom and now Vietnam have finalized agreements. Trump said India is close, but he issued a stern warning to other nations, including Japan, which he criticized as “spoiled” and unwilling to compromise.
“If you don’t make a deal, you’ll get a number,” Trump said Wednesday, referring to the looming 50% tariff he has promised to impose on countries that do not comply by the July 9 deadline.
The U.S. trade deficit with Vietnam stood at $123.5 billion in 2024, making it one of the largest contributors to America’s overall deficit. Trump says tariffs are a strategic tool to rebalance trade, bring manufacturing back to the U.S., and fund domestic priorities. “Hundreds of billions of dollars in tariffs are filling up the coffers of Treasury,” he said.
While Wall Street stocks initially rose on news of the Vietnam deal, gains were tempered by a disappointing jobs report from ADP, which showed a surprise 33,000 private-sector job loss in June. Official government data is expected Thursday.
In a parallel development, the Trump administration has signaled growing frustration with Canada, announcing Friday that all trade discussions with Ottawa are now suspended. Trump said he will announce the tariff Canada will pay “by next Friday.”
With the trade framework with China still under negotiation, and tariffs looming for other nations, Trump’s aggressive use of economic leverage marks a sharp turn in global trade dynamics–one that critics say risks inflation but supporters argue will strengthen U.S. industry and sovereignty.
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