U.S. and Vietnam Reach Tariff Agreement

New York, NY, July 3, 2025-The U.S. and Vietnam have struck a tariff deal that will see American goods enter Vietnam duty-free, President Trump announced Wednesday, reports the Wall Street Journal.

“In return, the U.S. will charge 20% tariffs on Vietnamese goods, Trump said, instead of the 46% tariffs he had announced in April, before putting the duties on pause to allow for negotiations. “It will be a Great Deal of Cooperation between our two Countries,” Trump said in a Truth Social post.

According to Market Insights, Vietnam is the second largest importer of flooring to the U.S. with $1.785 billion of resilient, $48 million of laminate, $292 million of hardwood, $86 million of ceramic and $161 million of tufted carpet in 2024. Total U.S. imports for 2024 were $2.372 billion or 20.6% of total flooring imports, second only to China at 20.7%.

“Additionally, goods from other countries that pass through Vietnam on their way to the U.S. will be charged a higher 40% tariff, Trump announced. The U.S. had made addressing so-called transshipment of goods-particularly those originating from China-a priority in its negotiations with Vietnam.

“The agreement marks the second trade pact Trump has struck under the threat of his so-called reciprocal tariffs, which were imposed on nearly all U.S. trading partners in early April, before being put on pause for 90 days. The U.S. previously struck a deal with the United Kingdom to lower some of its tariffs.

“Trump also arrived at a tariff truce with China, which had been hit by a different set of tariffs based on its role in the fentanyl trade and its unfair trade practices.

“The Vietnamese Embassy in Washington didn’t respond to requests for comment. Vietnamese state media said Wednesday that the government had asked Trump to recognize it as a market economy and lift export restrictions on high-tech goods. Market- economy status means Vietnam could face lower product-specific tariffs on a litany of goods shipped to the U.S., though it would still be subject to Trump’s economywide duties.

“Vietnam is the U.S.’s eighth largest trading partner, with nearly $150 billion in two-way trade in goods in 2024. But it accounts for the U.S.’s third-largest trade deficit-more than $123 billion last year.

“Both of those numbers have grown significantly in recent years as many global corporations, particularly apparel and footwear companies, turned to Vietnam as an alternative to China, which Trump and former President Joe Biden both hit with tariffs and sanctions over forced labor practices.”