Trump Inks Game-Changing Trade Deal with Vietnam—Here’s What It Means

Washington shakes hands with Hanoi in a move that’ll rewrite trade rules—or at least pad some corporate pockets.

The Deal Breakdown: No tariffs, no quotas—just pure economic adrenaline. Vietnam’s manufacturing sector braces for a tsunami of foreign capital (and probably a few factory fires).

Why It Matters: Supply chains pivot—again. Tech giants quietly update their ‘cheapest labor’ spreadsheets while Wall Street yawns and buys more Bitcoin.

Cynical Finance Jab: Goldman Sachs analysts already priced in the ‘growth potential’—by shorting Vietnamese coffee futures.

Vietnam aims to finalize a trade deal with the US before the tariff deadline strikes 

Vietnam had already been subjected to a 46% tariff as part of Trump’s announcements about reciprocal tariffs for “Liberation Day.” Later, that tariff was put on hold for 90 days, and this suspension is set to expire next week.

In late June, following the deadline, Pham Minh Chinh, the Prime Minister of Vietnam, said he anticipated finalizing a trade agreement with the US before the deadline.

Chinh expressed that he believes the outcome will arrive in less than two weeks. The Prime Minister also speculated that good things will come their way.

Meanwhile, Vietnam and the US have a strong understanding of tariffs. The Office of the United States Trade Representative reported that 2024 goods trade between the US and Vietnam reached about $149.6 billion.

They also mentioned that US exports of goods to Vietnam in 2024 were $13.1 billion, a 32.9% increase worth $3.2 billion compared to 2023.

Additionally, they stated that in 2024, US imports of goods from Vietnam amounted to $136.6 billion, rising by 19.3% worth $22.1 billion from 2023. The trade deficit for the US with Vietnam was $123.5 billion in 2024, reflecting an increase of 18.1%  worth $18.9 billion over the previous year.

Vietnam faces pressure to balance the US and China in its trade activities

The Southeast Asian nation, China’s neighbour and huge recipient of Chinese investment, has found itself in a tight spot as it tries to keep trading with the US without conflicting with China. The United States happens to be its largest export market and a security ally, after all.

Vietnam’s Government Office, which oversees the country’s ministries, conducted an emergency talk with the government’s trade gurus on April 3 – the day President Trump had unveiled the tariffs.

Officials in the trade and customs ministries were given instructions to intensify their checks during the meeting and two weeks to come up with an effective strategy to tackle Illegal transshipment.

This was after it was revealed that some goods that Vietnam sent to the West have Chinese-made inputs, while Chinese companies have also set up factories to cater to US customers. In many cases, Vietnamese workers process the products, which are then legally sent to the US with a “Made in Vietnam” label.

American officials have accused China of running goods through Vietnam to gain lower tariffs for products that do not have much Vietnamese involvement.

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