Trump says he has struck a trade deal with Hanoi — lowers tariffs to 20% for Vietnamese goods, but adds 40% tax on loophole Chinese companies use to circumvent measures

Vietnam flag on chip.

U.S. President Donald Trump has posted on Truth Social, stating that he has reached a deal with Vietnam to allow U.S. goods to enter the country without a tariff. In exchange, Washington will reduce tariffs on Vietnamese goods from the initial figure of 46%, down to 20% — but the agreement includes a provision stating that transshipped goods (a method used by Chinese companies to circumvent tariffs) will still be subject to a 40% import tariff.

According to Trump, he closed the trade deal after speaking to To Lam, the Communist Party of Vietnam's General Secretary. Trump also stated that this move will completely open up the country as a new market for American goods.