US President donald trump announced on July 2, 2025, that a major trade deal had been signed with Vietnam. This deal is the third country to be signed after trump imposed reciprocal tariffs. trump had imposed a 46 percent reciprocal tariff on vietnam, and vietnam had already announced that it was ready to do anything to avoid this tariff, and the US government has taken advantage of this. According to the agreement with vietnam, goods imported from vietnam to the US will be subject to a 20% tariff, which has been reduced from the 46% tariff announced in April. This reduction has been made considering the huge trade surplus between vietnam and the US.
On the other hand, no tax will be levied on goods exported from the US to vietnam, and it has also been decided to fully open the Vietnamese market to American companies. Through this, American companies will be able to invest in vietnam on a large scale. Also, a 40% tax will be levied on the "transshipping" method of sending goods from vietnam to other countries (especially China), which will help prevent trade irregularities.
The deal came after trump held talks with Do Lam, the General Secretary of the Communist party of Vietnam. trump, on his Truth Social platform, said that the deal would lead to great cooperation between the two countries. After the US's reciprocal tax announcement, trade deals have been made not only with vietnam but also with britain and China. Only an initial deal has been made with britain, which has reduced taxes on cars and other goods made in Britain.

With China, an agreement was made in May 2025 to remove trade restrictions imposed after the april "Liberation Day" announcement. In this, China's rare earth export restrictions and some US export restrictions were removed. The deal reduced tariffs on Chinese goods from 145% to 55%, and tariffs on Chinese goods from 125% to 10%. For india, a trade deal with the US is yet to be finalised. The 90-day tariff suspension announced by trump ends on July 9. india currently has a reciprocal tariff of 26%, lower than China's 54% and Vietnam's 46%.
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Sowmiya Sriram

03/07/2025 10:40 AM