Trump Administration Threatens 20% Tariff Hike on Vietnam

The Trump administration is intensifying pressure on trading partners to expedite negotiations for new trade deals ahead of a Wednesday deadline. The U.S. plans to send letters starting Monday to countries, warning them that higher tariffs could be imposed from August 1. This move adds to the uncertainty for businesses, consumers, and America’s trading partners, leaving questions about which countries will be notified and whether the deadline will be extended.

Kevin Hassett, director of the White House National Economic Council, stated that President Trump will decide when to conclude negotiations. “The United States is always willing to talk to everybody about everything,” Hassett said. “There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won’t. In the end, the president is going to make that judgment.”

Stephen Miran, the chair of the White House Council of Economic Advisers, suggested that countries negotiating in good faith and making concessions could potentially extend the deadline. The steeper tariffs announced in April threatened to reshape the global economy and escalate trade wars. Following market panic, the administration suspended most of the higher taxes on imports for 90 days. The negotiating window until July 9 resulted in announced deals only with the United Kingdom and Vietnam.

Trump imposed elevated tariff rates on dozens of nations with significant trade surpluses with the U.S., along with a 10% baseline tax on imports from all countries. Separate tariffs include 50% on steel and aluminum and 25% on autos. Since April, few foreign governments have agreed to new trade terms with Washington as demanded by the Republican president.

Trump indicated that the administration might send letters as early as Saturday to countries outlining their tariff rates if no deal is reached, but the U.S. would not start collecting those taxes until August 1. On Friday night, he mentioned sending out 10 or 12 letters on Monday, each with different tariff amounts and statements. However, he and his advisers have not specified which countries would receive these letters.

Treasury Secretary Scott Bessent dismissed the idea that August 1 is a new deadline and declined to comment on what might happen on Wednesday. “We’ll see,” Bessent said. “I’m not going to give away the playbook.” He mentioned that the U.S. is close to several deals and predicted big announcements in the coming days, though he provided no details.

Trump announced a deal with Vietnam allowing U.S. goods to enter duty-free, while Vietnamese exports to the U.S. would face a 20% levy. This is a reduction from the 46% tax proposed in April. Asked about potential deals with the European Union or India, Trump said letters are more effective due to the number of countries involved.

Canada will not receive such letters, according to Trump’s ambassador, Pete Hoekstra, following the resumption of trade talks. “Canada is one of our biggest trading partners,” Hoekstra said. “We’re going to have a deal that’s articulated.” Canadian Prime Minister Mark Carney has set a deadline of July 21 for a new deal, or Canada will increase trade countermeasures. Hoekstra did not commit to a specific date for a trade agreement but assured that Canada would not receive just a letter.