Trump Says U.S. Has Reached Trade Deal with Vietnam as Key Deadline Nears

Sophia Reyes · July 2, 2025 5:37 PM

President Trump on Wednesday said he had reached a trade deal with Vietnam, one week ahead of a July 9 deadline for tariffs to snap back to higher levels for U.S. partners.

Trump said Vietnam’s goods imported to the U.S. would face a 20% tariff, lower than the 46% tariff he had levied as part of his “Liberation Day” plans but higher than the blanket 10% tariff currently in effect. He also said Vietnamese goods would face a higher 40% tariff “on any transshipping” — when goods shipped from Vietnam originate from another country, like China.

Trump said that U.S. goods exported to Vietnam would not face a tariff.

“In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,'” Trump wrote on Truth Social.

The deal would be the second the U.S. has struck with a trade partner since Trump paused those sky-high “Liberation Day” duties, in addition to a pact with the United Kingdom. The U.S. has also agreed with China on a framework to move toward a larger trade deal.

Trump’s July 9 deadline has come back into focus in recent weeks as more countries work to reach agreements. Earlier this week, Trump said negotiations with Japan had deteriorated, warning that he would force Japan to accept higher tariffs of “30%, 35%, or whatever the number is that we determine.” Notably, that proposal exceeds the 24% “Liberation Day” level.

“I’m not sure we’re going to make a deal,” Trump said. “I doubt it with Japan. They’re very tough. You have to understand, they’re very spoiled.”

Using Japan as a reference point, Trump renewed threats to hold firm to his self-imposed July 9 deadline and impose new tariff levels on countries that haven’t secured deals, signaling he may forgo any further pause on the “Liberation Day” duties.

“I’ll be writing letters to a lot of countries,” he said.

Meanwhile, the European Union has signaled it is open to accepting a 10% universal tariff on many of its exports, but is seeking exemptions for sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft as part of any final agreement.

In North America, Canada has withdrawn its proposed digital services tax that would have impacted large U.S. tech firms. The White House confirmed that trade talks between the two countries have resumed after Trump threatened to end negotiations.