Former President Donald Trump has unveiled a fresh trade agreement with Vietnam that drastically cuts planned tariffs on Vietnamese goods from 46% to 20%, aiming to keep negotiations alive and avoid disruption ahead of a July deadline. In a post on Truth Social, Trump boasted about the deal, emphasizing its benefits for U.S. automakers — particularly large-engine SUVs — which he believes will find strong appeal in the Vietnamese market. The agreement also imposes a 40% tariff on goods rerouted through Vietnam from third countries, as the administration cracks down on trans-shipping loopholes.

While the finer details remain vague, Vietnam is said to have requested broader access to U.S. high-tech goods and official recognition as a market economy — longstanding goals that have been largely sidelined by Washington. Trump, meanwhile, has promised tariff-free treatment for U.S. exports to Vietnam under the new framework, a notable shift in tone amid his wider global tariff push.

The U.S. trade relationship with Vietnam has exploded in recent years, with Vietnamese exports to the U.S. nearly tripling since 2018. Still, American exports to Vietnam have lagged, highlighting a persistent trade imbalance. This deal, much like Trump’s earlier agreement with the UK, stops short of a full-scale trade pact but offers a tailored compromise as several countries scramble to finalize agreements before a looming July 9 tariff hike.