Vietnam Seeks to Lower Tariff Rate After Trump's Surprise Announcement

Vietnam was caught off guard by US President Donald Trump's announcement of a 20% tariff as part of a trade agreement. Vietnamese officials believed they had reached an agreement with the US, but were surprised by the tariff announcement. They are now negotiating to bring the rate down.

Vietnam was caught off guard by US President Donald Trump's announcement of a 20% tariff as part of a trade agreement. Vietnamese officials believed they had reached an agreement with the US, but were surprised by the tariff announcement. They are now negotiating to bring the rate down.

President Trump announced the framework agreement on July 2, stating that exports from Vietnam would face a 20% tariff, down from the 46% that was paused in April, or a 40% tariff if they originated in a different country. In exchange, Vietnam would "OPEN THEIR MARKET TO THE UNITED STATES," allowing the US to sell its products into Vietnam at zero tariff. However, Vietnamese negotiators had not agreed to the 20% rate, expecting it to be around 11% [2].

The announcement came just days before the White House's self-imposed July 8 deadline for trade negotiations. The deal was the second reached by the administration to avoid its threatened "reciprocal" tariffs, following Trump's suggestion in an April interview that he had made 200 deals [2].

The Vietnamese government has not formally accepted a key part of the agreement, despite Trump's claim that the terms had been agreed to by Vietnam's leader, Tô Lâm. Neither side has released documentation of those terms, raising questions about whether they did, in fact, reach an agreement [2].

The tariff announcement has sent shock waves through Vietnam. The Vietnamese government is now negotiating to bring the tariff rate down, but it remains to be seen if they will succeed. The situation highlights the ongoing uncertainty and complexity of US trade negotiations.

References:
[1] https://www.logisticsmgmt.com/article/reciprocal_tariff_pause_extended_to_august_1_amid_trade_negotiations_raising_pressure_on_u.s_trade_partners
[2] https://www.politico.com/news/2025/07/10/vietnam-trump-tariff-deal-00447715