On July 3, the U.S. administration revealed a new trade agreement with Vietnam that includes tariffs to prevent the rerouting of Chinese goods and address trade imbalances. This pact follows months of U.S. efforts to enforce reciprocal tariffs and counter China’s export practices, with the 90-day tariff pause ending July 9.
The deal applies a 20% tariff on Vietnamese products and a 40% tariff on goods transshipped through Vietnam to the U.S., aiming to prevent Vietnam from rerouting Chinese-origin goods.
China’s Ministry of Commerce firmly opposed any agreements that harm its interests, warning it would take countermeasures to protect its legitimate rights if needed.
The agreement increases tensions with Beijing and could establish a precedent for future U.S. deals involving transshipment, bringing potential economic risks for Vietnam and broader geopolitical consequences.
