Vietnam’s 20% Tariff Deal with Trump Leaves Businesses in Limbo

Vietnam's last-minute agreement with the TRUMP administration to avoid a 46% tariff threat has left key industries in uncertainty. The new blanket rate of 20% lacks detailed implementation rules, particularly for goods manufactured with Chinese materials—a critical issue for Vietnam's garment sector, which sources 70% of raw materials from China.

Thanh Cong Garment, a major supplier to global brands, faces unanswered questions about tariff applicability. "For products with materials from China but manufactured in Vietnam, what is the tariff? 20%, 30%, or 35%? We need to wait," said company chair Tran Nhu Tung.

The undefined "transshipment" clause—potentially imposing 40% tariffs—has triggered widespread concern. Without clear guidance from either government, manufacturers fear routine supply chain operations could be misinterpreted as tariff-evasion schemes.