Key Terms:

  • The U.S. has imposed a 20% tariff on all Vietnamese exports and a 40% tariff on transshipped goods (e.g., Chinese goods routed through Vietnam).

  • In return, Vietnam will eliminate import tariffs on key American products.

  • As part of the deal, Vietnam committed to purchasing $2 billion worth of U.S. agricultural goods and $8 billion worth of Boeing aircraft.

Market Impact:

  • The Vietnam stock market surged to a three-year high.

  • The Vietnamese đồng fell to a record low of 26,195 VND per USD.

  • U.S. companies like Nike gained on the announcement.

  • The move is seen as a way to disrupt China’s re-export strategy via Vietnam.

Expert Opinion:

  • Economists view the agreement as a strategic compromise: Vietnam avoids harsher tariffs (46%) and retains market access.

  • The agreement may reshape regional trade by setting a precedent for other Asia-Pacific countries.