HANOI/WASHINGTON, July 9 – Vietnam has agreed to a landmark tariff arrangement with the United States, accepting a 20% import duty on its exports and a steeper 40% rate on goods suspected of being Chinese transshipments. In return, the U.S. will grant Vietnam enhanced access to its consumer market, a move seen as part of Washington’s broader strategy to reduce China’s use of Southeast Asian partners to sidestep trade restrictions.

The agreement, announced late Tuesday, is intended to curb the practice of Chinese goods being rerouted through Vietnam to avoid tariffs imposed under ongoing U.S.–China trade tensions. It also offers Vietnam an incentive to further integrate into global supply chains with greater transparency and upgraded domestic manufacturing.

Vietnamese trade officials described the deal as “difficult but necessary,” underscoring the importance of maintaining strong relations with Washington while preparing enforcement mechanisms to monitor rules-of-origin compliance.

Analysts say the tariff is a compromise: high enough to discourage abuse, but calibrated to preserve Vietnam’s competitiveness. However, the elevated transshipment tariff is expected to put pressure on Vietnam’s import-heavy industries, especially textiles, electronics, and furniture.

American officials praised Vietnam’s cooperation, framing the agreement as a model for other Asian partners. Meanwhile, Vietnamese exporters expressed concern over the short-term impact on profit margins and sourcing practices, particularly given their reliance on Chinese components.

Both sides are expected to finalise technical protocols over the coming weeks, with joint inspections and digital customs tracking among the proposed enforcement tools.

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References
Reuters. (2025). Vietnam Q2 GDP growth quickens on strong exports, US trade deal brightens outlook.
Reuters. (2025). Vietnam to introduce measures to cope with US tariffs, trade official says.
Time. (2025). Why the U.S.-Vietnam ‘Transshipment’ Clause Complicates Trade Tensions with China.
The Wall Street Journal. (2025). Vietnam Trade Deal Takes Aim at Back Door for Chinese Goods.
The Guardian. (2025). Is Trump tariff deal really a win for Vietnam – or a way of punishing China?.