“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,” the president announced, making specific reference to foreign goods rerouted through Vietnam to dodge existing U.S. tariffs.
But the real victory came in what Trump secured for America in return. For the first time ever, Vietnam has agreed to fully open its markets to U.S. products—with zero tariffs.
“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. 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,” Trump stated emphatically.
This is a massive win for American car makers, especially as they look to expand globally. Trump specifically pointed to the potential success of American SUVs in Vietnamese markets.
“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,” Trump added. He also gave praise to Vietnamese General Secretary To Lam, calling the negotiations an “absolute pleasure.”
This deal doesn’t just eliminate tariffs—it also cracks down on a longstanding abuse of the U.S. trade system. For years, critics in the Trump administration have blasted Vietnam for acting as a backdoor for Chinese goods to enter the American market tariff-free. White House trade advisor Peter Navarro once described Vietnam as a “colony of China.”
Now, Vietnam becomes the first nation to avoid Trump’s incoming wave of reciprocal tariffs, which were set to hit several countries with rates ranging from 20% to 50% starting July 9. The U.S. has already carved out similar arrangements with key allies like the U.K. and is currently in a tariff ceasefire with China as talks continue.
According to details from a draft agreement obtained by Politico, both countries will collaborate to create strict “rules of origin,” aimed at halting the inflow of Chinese-made goods disguised as Vietnamese exports. Vietnam has also committed to cracking down on intellectual property theft—a long-standing problem in international trade.
American agriculture is also set to benefit in a big way. Vietnam will now give “preferential market access” to U.S. farmers, opening the door for exports of pork, poultry, and other essential American food products.
In a major financial pledge, Vietnam has agreed to purchase $8 billion in Boeing aircraft and an additional $2.9 billion in U.S. agricultural products, according to a memorandum signed in Hanoi.
Once again, President Trump has delivered what many of his predecessors only talked about—real, enforceable trade deals that put America first and empower U.S. industries to compete and win globally.
