As the expiration of the reciprocal tariff waiver imposed by U.S. President Donald Trump on countries around the world in April approaches, the United States and Vietnam have reached a trade agreement.
On the 2nd (local time), President Trump expressed, "I am honored to announce that we just reached a trade agreement with the General Secretary of the Communist Party of Vietnam after our conversation," adding, "This will be a great agreement leading to cooperation between our two countries."
According to President Trump, all Vietnamese products entering U.S. territory will be subject to a 20% tariff, while goods transshipped (products exported to the U.S. via Vietnam from a third country) will be subject to a 40% tariff.
Considering the initial tariff rate applied to Vietnam (46%), this represents a significant reduction. The high tariff on transshipped goods is seen as targeting Chinese products that enter through Vietnam.
In this regard, Trump commented, "Vietnam will open its market to the U.S., and we will be able to sell our products to Vietnam duty-free," calling it "an unprecedented measure."
According to statistics presented by the U.S., Vietnam ranked fifth among countries with the highest trade deficits with the U.S. from January to April of this year, following China, Ireland, Mexico, and Switzerland.
According to the political media outlet Politico, this agreement is expected to grant the U.S. priority market access for agricultural products, including poultry, pork, and beef, as well as unspecified manufactured goods.
Additionally, it has been reported that the draft joint statement includes plans for importing 50 Boeing aircraft from Vietnam and purchasing $2.9 billion (approximately 3.9 trillion won) worth of U.S. agricultural products.
The possibility of exporting U.S.-made sports utility vehicles (SUVs) and large engine vehicles to Vietnam is also emerging.
On the same day, President Trump and Secretary General Le Hong Anh discussed major measures to enhance the comprehensive strategic partnership between the two countries and agreed to foster cooperation in the economic, trade, and investment sectors.
Since the discussions were conducted via phone, Secretary General Le proposed an invitation for President Trump and his wife to visit Vietnam.
Meanwhile, this is the first time the Trump administration has reached an agreement with an Asian country while negotiating with trade partners, which is expected to influence the negotiation processes with other Asian countries.
Previously, the U.S. signed a related agreement with China, but it is generally regarded as difficult to see it as a comprehensive trade agreement as it is based on export controls on rare earth elements.
On April 9, the Trump administration imposed differentiated reciprocal tariffs on 57 economic entities (56 countries plus the European Union) and, 13 hours later, decided to waive it for 90 days, excluding China, subsequently conducting trade negotiations.
Recently, Trump has suggested that there would be no further waivers during negotiations with Japan, while continuing to criticize Japan for being "badly behaved."