A major development in the global trade landscape is the newly announced trade agreement between the United States and Vietnam. As reported by the BBC (3 July 2025):
“President Donald Trump said on Wednesday that the US will charge 20% tariffs on imports from Vietnam under a new trade deal reached during last-minute negotiations. Products sent from Vietnam to the US had faced a 46% levy, which was set to go into effect next week as part of Trump’s ‘reciprocal’ tariffs announced in April. Dozens of other economies, including the European Union and Japan, are still scrambling to make their own deals with the US before the planned increases.”
Key information for B2B sourcing professionals
- Tariffs Reduced, But Not Eliminated: The US will impose a 20% tariff on most Vietnamese imports, a reduction from the originally planned 46% levy, but still a significant cost increase for US importers and their customers. “Share prices of companies making goods in Vietnam initially rose on news of the deal, although those gains were trimmed after it emerged products will still face a 20% tax,” the BBC reports.
- Market Access for US Goods: The agreement is reciprocal – Vietnam will charge no tariffs on US products. Trump posted on social media, “Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that we will be able to sell our product into Vietnam at ZERO Tariff.”
- Crackdown on Trans-shipping: To address concerns about Chinese products being rerouted through Vietnam, the US will impose a 40% tariff on goods that pass through Vietnam in a process known as ‘trans-shipping’. Peter Navarro, Trump’s senior counsel on trade and manufacturing, has said that a third of all Vietnamese exports to the US were actually Chinese products shipped through Vietnam. But Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, said that trans-shipping can be "a vague and often politicised term in trade enforcement… It’s unclear how much illegal re-routing Vietnamese officials will even be able to catch, or how much exists."
- Impacts on Global Supply Chains: Vietnam has emerged as a key manufacturing hub for global brands like Nike, Apple, Gap, and Lululemon, especially as companies sought to shift production out of China to evade earlier rounds of US tariffs and to meet regulatory requirements on environmental issues and human rights.
Strategic takeaways for B2B sourcing professionals
- Cost Calculations Must Change: Even for those who shifted from China to Vietnam, significant new costs (20% tariffs) are now in play.
- Trans-shipping Scrutiny: Companies must ensure their Vietnamese supply chains are not inadvertently exposed to the new 40% “trans-shipping” tariff.
- Market Diversification Remains Critical: The landscape remains volatile, with “dozens of other economies… still scrambling to make their own deals with the US before the planned increases.”
- Opportunity for US Exports: US manufacturers and suppliers should look at Vietnam as a newly opened market for tariff-free exports.
Meet Vietnam's top suppliers face to face at Global Sourcing Fair Vietnam
Global Sourcing Fair Vietnam is an international B2B sourcing exhibition connecting thousands of international buyers with Vietnamese and Asian manufacturers. Taking place on 22–24 April, 2026, at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City, Vietnam, the show focuses on key categories including Home & Gift, Fashion & Accessories, and Printing & Packaging.
Photo by Huỳnh Tiến on Unsplash
