President Donald Trump announced Wednesday that the United States has reached a new trade agreement with Vietnam.
The deal opens up the Southeast Asian nation’s market to American producers while imposing steep tariffs on Vietnamese imports.
In a post on Truth Social, Trump wrote:
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam.”
The deal arrives just ahead of a July 9 deadline, when Trump’s 90-day pause on new foreign tariffs was set to expire.
Had no agreement been reached, Vietnamese goods would have been hit with a 46% tariff.
Under the terms of the agreement, American exports to Vietnam will now enjoy full tariff-free access, according to the president.
In return, the U.S. will impose a 20% tariff on all Vietnamese goods and a 40% tariff on transshipped goods.
Transshipped products are rerouted through Vietnam from countries like China to avoid trade restrictions.
Trump said he hopes the deal will especially benefit U.S. automakers.
“It is my opinion that the SUV … which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,” Trump wrote.
The trade imbalance