Trump announces Vietnam trade deal, 20% tariff on its imports to U.S

President Donald Trump said Wednesday that the United States has struck a trade deal with Vietnam that includes a 20% tariff on the southeast Asian country's imports to the U.S.

Trump's announcement on Truth Social said that the deal will give the U.S. tariff-free access to Vietnam's markets.

Vietnam also agreed that goods would be hit with a 40% tariff rate if they originated in another country and were transferred to Vietnam for final shipment to the United States.

The process, known as transshipping, is used to circumvent trade barriers. China, a top exporter to the U.S., has reportedly used Vietnam as a transshipment hub.

The agreement was unveiled less than a week before a 90-day pause on many of Trump's so-called reciprocal tariffs was set to expire, sending U.S. duties on imports from dozens of countries soaring.

Under that protectionist trade scheme, Vietnamese imports to the U.S. were subject to a 46% blanket tariff.

Trump has signaled that he may ignore or revise the upcoming deadline for the reciprocal tariffs to snap back higher. The 90-day pause, which lowered tariffs on nearly all other countries to a blanket 10% rate, was imposed in early April to give countries breathing room while they negotiated deals with the U.S.

With the deadline approaching, the Trump administration has only struck revised trade frameworks with China and the United Kingdom, though it has repeatedly said the U.S. is close to deals with numerous other countries.