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Nike warns that tariffs introduced by President Donald Trump could raise $1 billion this year.
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WASHINGTON – President Donald Trump said Trump has secured a trade deal with Vietnam just to be a second agreement with another country ahead of the July 9 deadline, when U.S. tariffs could skyrocket.
Trump said the US would collect 20% tariffs on communist imports from Vietnam and 40% tariffs on transshipping of goods, but details of the transaction were not immediately clear.
“In return, Vietnam will do something they have never done before and give the United States full access to the market for trade,” Trump said in a July 2 post on social.
“In other words, they mean “opening the market to the US.” This means we can sell our products to Vietnam with zero tariffs,” the president added.
Trump announced the deal after speaking with Lam, the general secretary of the Communist Party of Vietnam. Vietnam’s state media said the US and Vietnam have reached an agreement to a joint statement on a “mutual, fair and balanced” trade agreement.
In Trump’s call with Lam, Vietnam’s leaders have called on the US to recognize Vietnam as a market economy and remove restrictions on exporting high-tech products to Vietnam, Vietnam News reported.
Businesses are currently paying the 10% universal tariffs Trump has imposed on imports from Vietnam and around 180 other countries.
However, the rather large mutual tariffs Trump initially imposed in early April are due to return on July 9, shortly after a 90-day suspension amid the turbulence of the market.
“No, I’m not,” Trump told reporters on July 1 when asked if he plans to extend the moratorium. “I’m not thinking about pauses. I write letters to many countries, and I think you’re just starting to understand the process.”
When the Trump administration delayed drastic mutual tariffs so that negotiations could continue with other countries, White House economic teams predicted that deals would come at a fierce speed.
“We’re going to do 90 transactions in 90 days. It’s possible,” White House trade adviser Peter Navarro said at the time.
But the administration is struggling to advance that pledge.
President Trump and British Prime Minister Keri have reached the first trade deal since Trump imposed new tariffs, but no other tariffs have continued.
In June, Trump announced the framework for a trade agreement with China, with the US collecting 55% tariffs on Chinese imports, and China collecting 10% on US imports. A month ago, Trump and China agreed to cut the triple-digit tariffs imposed on the other as the two parties continued talks.
The Trump administration previously pointed out Japan as another opportunity to secure a trade contract. But Trump on Tuesday said there was no chance of a US contract.
“I doubt Japan and it – they’re very strict. You have to understand, they’re spoiled,” Trump told reporters.
Contribution: Reuters
Reach Joey Garrison with X @joeygarrison.
