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20%, 40%, or Nothing? Trump's Tariff Roulette Spins Again - Vietnam Folds Under Pressure

United States: In a high-stakes development just days before his self-set July 9 deadline, President Trump declared on Wednesday that his administration had locked in a fresh trade arrangement with Vietnam. This move signals a strategic recalibration in America’s global trade stance, one that blends economic pressure with diplomatic brinkmanship.

Under the agreement, Vietnamese goods entering the US will now be slapped with a 20 percent tariff—substantially loftier than the ongoing flat 10 percent, but markedly lower than the previously floated 46 percent under Trump’s assertive “Liberation Day” blueprint.

However, he didn’t pull punches when addressing transshipped items—products initially made elsewhere, like in China, but routed through Vietnam. Those will bear a steeper 40 percent charge.

On the flip side, US products shipped into Vietnam will enjoy tariff-free access. Trump, in his signature all-caps flourish on Truth Social, emphasized, “In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES.’”

This Vietnam pact marks the second such alignment since Trump froze the hefty “Liberation Day” levies. The other notable agreement came earlier with the United Kingdom. Parallel to these negotiations, a tentative framework with China is also in play, potentially laying the groundwork for a broader, far-reaching trade treaty.

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