The White House announced that the United States and Vietnam are on track to finalize a trade agreement soon. This deal will keep tariffs at 20 percent on most Vietnamese goods but will eliminate duties on specific products to be determined later. Vietnam, in return, has pledged to grant “preferential access” to a majority of US goods.
Both nations have endorsed a framework for a trade agreement that emphasizes “reciprocal, fair, and balanced” trade practices. President Donald Trump previously declared tariffs of 20 percent on various Vietnamese products and a 40 percent duty on goods transshipped through Vietnam from other countries. Under the new arrangement, the US will uphold the 20 percent tariff on Vietnamese items but will pinpoint products eligible for a zero tariff.
The joint statement from the White House highlighted that the agreement will grant unparalleled market access for exporters from both countries. Vietnam recorded a trade surplus of $123 billion with the US last year, its primary export destination.
In the upcoming weeks, the US and Vietnam will finalize the Agreement on Reciprocal, Fair, and Balanced Trade, ready it for signing, and complete necessary domestic procedures before it takes effect. The two nations will collaborate to address non-tariff barriers that concern them both.
Vietnam has agreed to accept automobiles meeting US safety and emissions standards, resolve issues related to import licenses for US medical devices, and simplify regulatory processes for US pharmaceuticals. Furthermore, Vietnam will uphold its obligations under specific international intellectual property agreements.
The commitment between the US and Vietnam extends to reinforcing cooperation to enhance supply chain resilience, including combatting duty evasion and collaborating on export controls. Notably, Vietnam has made assurances to increase imports of American products to reduce the trade gap between the two countries.
As part of these efforts, Vietnam Airlines has inked a deal with Boeing to acquire 50 aircraft valued at over $8 billion. Additionally, Vietnamese firms have signed twenty memorandums of understanding with US counterparts to procure US agricultural goods amounting to an estimated total of over $2.9 billion.
According to Vietnam’s customs data, bilateral trade between the US and Vietnam surged by 27 percent in the first nine months of this year compared to the same period last year, reaching $126.4 billion. In this timeframe, Vietnam’s trade surplus with the US expanded to $99.1 billion from $77.2 billion in the previous year.