US cuts tariff on Vietnamese imports to 20%

On the early hours of August 1 (Vietnam time), the White House published President Donald Trump’s Executive Order revising tariff rates for 69 countries and territories listed in Annex I, including Vietnam.

Accordingly, a 20-percent rate is now applied to the Southeast Asian country, replacing the 46-percent rate announced in early April, which had been suspended for 90 days to allow for negotiations on a reciprocal trade agreement.

From late April, Vietnam’s trade delegation, led by Minister Nguyen Hong Dien, and American negotiators headed by U.S. Trade Representative Jamieson Greer, with support from U.S. Commerce Secretary Howard Lutnick, held multiple technical and ministerial level meetings.

Negotiations covered a broad set of issues, including reciprocal tariffs, rules of origin, customs procedures, agriculture, non-tariff measures, digital trade, services and investment, intellectual property, sustainable development, supply chains and broader trade cooperation.

These intensive talks culminated in a substantial reduction of U.S. reciprocal tariffs on goods exported from Vietnam.

The ministry emphasized that both sides will continue following discussions to finalize a comprehensive reciprocal trade agreement grounded in the principles of openness, constructiveness, equality, respect for independence and political systems, mutual benefit, and attention to each country’s level of development.

Future efforts will focus on cultivating stable and mutually beneficial economic, trade, and investment relations in line with the Vietnam–U.S. strategic comprehensive partnership, established in September 2023.

According to U.S. Customs data, total bilateral trade between Vietnam and the U.S. reached $149.7 billion in 2024, with U.S. imports from Vietnam totaling $136.6 billion and U.S. exports to Vietnam at $13.1 billion.

This resulted in a U.S. trade deficit with Vietnam of $123.5 billion, making Vietnam the third-largest country shipping a surplus to the U.S., after China and Mexico.

In the first five months of 2025, two-way trade rose 36.5 percent year-on-year to approximately $77.4 billion, with Vietnam recording a $64.8 billion trade surplus, ranking fourth among countries with the largest trade surpluses with the U.S., following China, Mexico, and Iceland.

Currently, the U.S. is Vietnam's second-largest trading partner after China and the largest destination for Vietnamese exports, according to the Vietnam Customs.