US-Vietnam Trade Deal Sows New China Uncertainty

While the heftiest of Donald Trump's tariffs on Vietnam have been avoided, there are worries about the effect of the deal with regard to China (Credit: AFP)

Vietnam's trade deal with the United States averts the most punishing of Donald Trump's "reciprocal" levies but analysts warned it could provoke a fresh standoff between Washington and Beijing.

The Southeast Asian nation has the third-biggest trade surplus with the United States of any country after China and Mexico, and was targeted with one of the highest rates in the US president's "Liberation Day" tariff blitz on April 2.