US President Donald Trump announced that the US would impose lower-than-expected tariffs of 20% on many Vietnamese exports, and 40% on transshipments through Vietnam from third countries.

Under the terms of the deal, Vietnamese goods produced locally will be taxed at 20%, while those originating from other countries and re-exported to the US will be taxed at 40%. In return, US goods will enter Vietnam duty-free.

“Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will OPEN THEIR MARKET TO THE UNITED STATES, meaning that, we will be able to sell our product into Vietnam at ZERO Tariff”, wrote Donald Trump in a post on Truth Social.