Measure will increase considerably the price of shoes and clothing that the country of Southeast Asia exports massively to the United States
The American President Donald Trump announced on Wednesday (2) that signed a trade agreement with the Vietnam which establishes a rate of at least 20% of Vietnamite exports to United States. The deal will greatly increase the price of footwear and clothing that the country of Southeast Asia exports massively to the United States. But it was the price Hanoi had to pay to avoid the threat of an even larger tariff of 46%. In early April, Trump announced his “reciprocal” tariffs against the rest of the world: a minimum surcharge of 10%, which reaches 50% to countries that export more to the United States than matter in American products. Faced with shock and panic in the financial markets, the Republican president suspended his highest rates for 90 days, but they will probably re -appreciate on July 9.
“I just closed a business deal with Vietnam. Details soon!” Trump wrote on his social Truth platform. In another message, he explained that it was “a great honor” and talked to “to Lam, the respected secretary general of the Vietnam Communist Party.” According to the agreement, Vietnam products entering the United States will be subject to a 20% rate, and 40% for products sent through Vietnam from other countries. “In return, Vietnam will do something unheard of: it will grant the United States full access to its commercial markets,” said Trump.
“In other words, they will open their market to the United States, which means we can sell our products in Vietnam without tariffs,” he specified, estimating that this will be a great opportunity for SUV vehicles. The United States is Vietnam’s main export market, with $ 57 billion (R $ 310.6 billion) in sales in the first five months of 2025.
Vietnam has confirmed the agreement without specifying the rate of tariffs. “President Donald Trump has valued Vietnam’s commitment to provide preferential access to American products, including large vehicles,” the Vietnamese government said in a statement. The 20% surcharge “is a much better result than the initial 46%, but I wouldn’t be very enthusiastic,” he told AFP Dan Martin from the consultancy Dezan Shira & Associates. Martin wonders how the 40% will be applied because “if the United States include products with foreign components in this category, this could affect many companies.”
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The actions of textile companies and sports goods manufacturers initially gained strength on Wall Street, before falling after Trump’s second message. Around 4:50 pm GMT (1:50 pm in Brasilia), brands whose clothing products are made in Vietnam evolved mixedly, such as gap (+0.18%), Ralph Lauren (+0.07%) and Lululemon (-0.10%).
*With information from AFP
Posted by Fernando Dias
Source: Jovempan
I have been working as a journalist for over 10 years. In that time, I have covered the news from all corners of the world, and written about everything from politics to business.I’m now a full-time author, and my work can be found at Global happenings. My aim is to bring you up-to-date news and views on global affairs, in a format that is easy to read and understand.
