Trump Imposes Tariffs on Vietnam, Citing Transshipment Concerns – A Developing Story
Washington D.C. – July 3, 2025 – In a move poised to reshape global trade dynamics, U.S.President Donald Trump announced today a new trade agreement with Vietnam involving meaningful tariffs. The agreement,reached after “weeks of intensive diplomacy” with Vietnamese General Secretary Su Lin,will see a 20% tariff imposed on all Vietnamese exports to the United States,and a staggering 40% tariff on goods deemed to be “transshipped” – products originating in countries like china and utilizing Vietnam for final assembly or routing China.
Key Takeaways:
Tariff Structure: 20% on all Vietnamese exports, 40% on transshipment goods.
Reciprocity: Vietnam will eliminate all tariffs on U.S. imports.
Target: Primarily aimed at curbing the transshipment of chinese goods through Vietnam.
Strategic Implications: The move challenges the existing U.S. strategy of viewing Vietnam as a key strategic partner in countering China’s influence in Asia [[1]].
* Market Reaction: initial market response has been positive for U.S. apparel and footwear companies like ON Holding, Nike, and Lululemon, with stocks experiencing significant gains following the announcement United States, with exports totaling nearly $137 billion. This surge in exports is directly linked to manufacturers shifting production away from China.
Uncertainties Remain
the U.S. government has yet to release a detailed list of specific goods subject to the 40% transship
