This move forms part of Trump's broader reciprocal tariff strategy, under which multiple nations faced tariff threats unless they granted better terms to U.S. exporters. The deal follows a 90-day pause granted to Vietnam after being named one of 10 countries subject to up to 60% tariffs.

Highlights of the U.S.-Vietnam deal include:

20% tariffs on standard Vietnamese exports to the U.S.

40% tariffs on transshipped goods, mainly aimed at curbing Chinese rerouting via Vietnam.

Zero tariffs for U.S. goods entering Vietnam-covering sectors from agriculture and manufacturing to autos and energy.

Trump emphasized that the deal marks a shift from "unfair trade dominance to reciprocal partnerships." Vietnam, which held a $122 billion trade surplus with the U.S. in 2024, becomes the latest to secure a tailored agreement following similar moves by the UK and China.

For U.S. agriculture, this agreement could be a breakthrough. With Vietnam removing tariffs on all U.S. imports, farmers and agribusinesses gain preferred access for soybeans, corn, nuts, meat, dairy, and specialty crops. It could significantly boost commodity exports, particularly as Southeast Asia continues to expand its food imports to meet population and economic growth.

Concerns remain, however, over the enforcement of transshipment tariffs and how businesses will verify the origin of goods routed through Vietnam. Additionally, U.S. apparel and electronics manufacturers relying on Vietnamese supply chains may see higher input costs.

The deal also aligns with broader strategic ties between the U.S. and Vietnam, which include infrastructure development and deeper diplomatic engagement. Vietnam's role as a counterbalance to Chinese economic dominance in Asia further elevates the significance of this bilateral pact.