The United States and Vietnam will finalize a new trade agreement in the coming weeks. The deal keeps a 20% tariff on most goods shipped from the country to the United States, while allowing some products to move toward zero duty later.
A joint statement released Sunday said both sides have agreed on a framework for “reciprocal, fair and balanced” trade. In return, the country will provide what the statement called “preferential access” for most American goods.
The current tariff level was first announced in July, when President Donald Trump said the United States would apply a 20% charge on many products from the country and a 40% levy on goods routed through the country from elsewhere.
Last year, the country recorded a trade surplus of $123 billion with the United States, its largest export market. The new agreement keeps the tariff rate at 20% for now, but Washington and Hanoi will identify items where the rate can fall to zero.
According to the statement, the change “will provide both countries’ exporters unprecedented access to each other’s markets.”
Non‑tariff rules come under review
The statement said both sides will work to finish legal steps, sign the agreement, and prepare for it to enter into force. It also said the United States and Vietnam will work on non‑tariff barriers.
The country agreed to recognize U.S. motor vehicle safety and emissions standards. That means vehicles built to American rules can be sold there without new testing. It also agreed to address import licensing for U.S. medical devices and to streamline regulatory approvals for U.S. pharmaceutical products.
The statement added that the country will fully implement obligations under certain international intellectual property treaties.
The statement also said:
“The United States and Vietnam are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls.”
Duty evasion concerns have grown in recent years, especially involving goods that pass through the country from third countries before entering the United States. The framework aims to limit that practice through new verification steps and data cooperation between customs agencies.
The focus on supply chain resilience reflects heavy trade flows between both economies. Bilateral trade in the first nine months of this year reached $126.4 billion, up 27% from a year earlier, according to customs data. In the same period, the country’s trade surplus with the United States increased to $99.1 billion from $77.2 billion a year earlier.
Airline purchase and agricultural deals expand U.S. export reach
To reduce the trade gap, the country has recently agreed to buy more American goods. Vietnam Airlines (V3), the national carrier, will purchase 50 Boeing aircraft in a deal valued at more than $8 billion, according to the White House.
The statement also said companies from the country signed twenty memorandums of understanding with American firms to buy agricultural commodities worth an estimated $2.9 billion.
The agreement leaves tariff adjustments for later. For now, only the framework is settled: 20% stays, a list of possible zero‑duty goods will be drafted, and access for American products will expand. The plan also includes domestic procedures in both countries before final entry into force. Officials said this process will take shape “in the coming weeks”, with signing preparations already underway.
The joint document repeated that the goal is to maintain what it described as a “reciprocal, fair, and balanced” trading relationship. The next step is selecting which goods move into the zero‑duty category.
The process will involve trade agencies, product‑specific assessments, and formal notice. No timeline was released for those product lists, and no sectors were named in advance.
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Source: https://www.cryptopolitan.com/u-s-and-vietnam-strike-trade-deal/