Shortly after the phone call, Trump announced that the United States has reached a trade deal with Vietnam. Accordingly, the US will apply a 20% tariff on Vietnamese goods and a 40% tariff on transhipped goods, as opposed to the 46% rate announced in early April by the Trump administration.

Relief from lingering uncertainty

For months, uncertainty surrounding US trade policy has kept many Vietnamese exporters in a defensive stance. Pham Van Xo, chairman of the Binh Duong Import-Export Association said, the lack of clarity around tariffs made American buyers reluctant to place orders. As a result, numerous manufacturers had to scale back production or halt operations entirely, fueling prolonged anxiety in the business community.

“Without knowing the tariff rates, businesses couldn’t calculate prices or plan production. Now that the rates are defined, buyers are regaining confidence,” said Xo.

With official tariff rates now in place, businesses can confidently price their products, negotiate deals, and better manage risk. Even though the new rates are not as low as the previous 0%, the transparency and predictability have brought much-needed stability back to business planning and operations.

Retaining competitive edge

In wood processing, one of Vietnam’s top export industries to the US, the outcome of the trade discussions was viewed as a positive breakthrough.

“A 20% tariff is much better than the previously proposed 46%. Although we once enjoyed a 0% rate, companies can still operate profitably under the new terms,” said Nguyen Chanh Phuong, vice president of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA)

One notable development is the cost-sharing model for tariffs. Instead of US importers absorbing the full tax, it is now being evenly split among three parties - the Vietnamese manufacturer, the US importer, and the distributor. This model reduces financial pressure on Vietnamese firms and helps maintain competitive pricing.

“The ideal formula is a three-way split at 7% each. That’s the most sustainable model,” explained Phuong.

Sustaining market share

From the perspective of the fruit and vegetable industry, Dang Phuc Nguyen, secretary-general of the Vietnam Fruit and Vegetable Association (Vinafruit), said the new 20% tariff would not cause significant disruption, as many processed fruit products already face US tariffs ranging from 5–15%.

“Vietnamese agriculture can remain competitive, especially since regional competitors like Thailand and the Philippines are likely to face similar or even higher tariffs,” he noted.

Moreover, Vietnam continues to maintain a 0% tariff on US agricultural imports, which plays a critical role in balancing the trade deficit, a key concern for the United States. Nguyen pointed out that US agricultural exports to Vietnam have already nearly doubled Vietnamese exports to the US. and this gap may double again by 2025, further strengthening long-term economic ties.

Looking ahead, craft associations and businesses alike are optimistic that Q3 2025 will mark a strong rebound, especially in manufacturing hubs such as Binh Duong, Dong Nai, and Long An. With confidence restored, orders are expected to return, laying the groundwork for a new growth cycle in Vietnam - US trade.

President Trump announces US trade deal with Vietnam

VOV.VN - About a week before the 90-day tariff suspension is set to expire, President Donald Trump of the United States announced on July 2 that a trade agreement has been reached with Vietnam.