Vietnam’s 20% Tariff Deal with Trump: Missing Details and No Final Agreement Text

Another 'historic' deal with more holes than substance—Vietnam’s 20% tariff agreement with the Trump administration lacks critical details and a finalized text. Classic case of 'announce first, figure it out later' diplomacy.

Where’s the fine print? The deal—hailed as a win—doesn’t even have a signed document. Just vague promises and political posturing. Meanwhile, markets shrug because, let’s face it, nobody trusts tariff theater anymore.

Finance cynicism bonus: Wall Street’s already pricing in the backdoor loopholes—because if there’s one thing traders love, it’s exploiting half-baked policy.

Unclear transshipment clause triggers panic in factories

A clause in the Trump deal threatens to apply a 40% tariff on “transshipped” goods. But no one has defined what transshipment means. The Vietnamese government hasn’t offered clarification, and the U.S. hasn’t released any details either. This has raised fears among manufacturers that goods containing Chinese components—even if legally assembled in Vietnam—will get hit with heavier tariffs.

Rich McClellan, founder of RMAC Advisory, which advises both companies and Vietnam’s government, said, “There is a sigh of relief that at least we know what the answer is for Vietnam . . . but there is still quite a lot of uncertainty in the agreement that exists right now.” He called the transshipment clause “the most ambiguous and most potentially risky portion of this agreement.”

Economist Michael Wan from MUFG said the impact of the 40% clause depends on how far the Trump administration takes its definition. If it targets blatant cases like fake “Made in Vietnam” labeling, the damage may be limited. But if it’s based on foreign material thresholds, then Vietnamese exports could take a serious hit.

Vietnam’s manufacturing sector has been built around serving U.S. demand. Nearly one-third of all Vietnamese exports go to the U.S., and its 2024 trade surplus with America hit $123 billion, making it the third-largest behind China and Mexico.

Now, that success is being viewed with suspicion in Washington, especially since almost one in three new manufacturing projects in Vietnam last year were funded by Chinese investors.

Hanoi scrambles for clarity before August deadline

Prime Minister Pham Minh Chinh met with the U.S.-Asean Business Council in Hanoi on Friday to push for clearer terms. The group represents companies like Apple, Amazon, and Boeing. Pham asked the council to support Vietnam’s efforts to finalize a full agreement, lower the tariff rate, and prevent actions that damage trade relations.

Trump’s public announcement caught Vietnamese leaders off guard. Pham said the countries had agreed on a framework but warned that detailed rates for specific products were still missing. He also asked U.S. companies to push the WHITE House to recognize Vietnam as a market economy, which would help reduce pressure from trade defense tools.

As of now, investors haven’t pulled back. Foreign direct investment in Vietnam ROSE almost 30% to $21.5 billion in the first half of the year. But U.S. retailers are already sounding alarms. Steve Greenspon, founder of Honey-Can-Do, said:

“A 20 per cent tariff will result in higher prices and inflation on goods. This will certainly lead to reduced demand for goods, hurting American businesses and jobs.”

Thanh Cong Garment has already seen a drop of 15–20% in U.S. orders for the third quarter, due to a shipping rush before the July deadline and the wait for clarification.

Vietnam’s early MOVE may have helped it avoid the worst threats from Washington—for now. But with no full text, no product list, and no guarantee of better terms than its neighbors, the final outcome is still unknown.

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