President Donald Trump’s new trade pact with Vietnam is making waves far beyond Hanoi. The deal introduces tariffs of up to 20% tariff on Vietnamese goods, doubling previous rates and raising red flags for US consumers and global markets.
Economists and industry experts say the Vietnam agreement sets the tone for future US trade negotiations across Asia. As talks continue with other trade partners, analysts warn higher import prices may soon follow.
Why US consumers may pay first
Clark Packard of the Cato Institute puts it plainly: “American consumers will ultimately bear the burden,” he told CNN. With key goods like electronics, apparel, and furniture flowing in from Vietnam, even a “deal” means higher baseline prices for everyday products.
The Independent Institute’s Caleb Petitt offered a similar view, saying the tariffs would not benefit US industry and would lead to higher costs and uncertainty for consumers. While some businesses might initially absorb the impact, CNN reports they may eventually be forced to pass it on.
And the impact may not stop at American checkout lines. Economists at Citi, speaking to CNBC, warned that the Vietnam pact could shape how Washington negotiates with others in the region. “More for EM Asia to worry about than expected gains,” they said, pointing to Thailand and Malaysia as particularly exposed.
More countries, more risks?
The 20% tariff in the Vietnam deal may not be an exception. Sebastian Raedler of Bank of America said tariffs “are going to go up from here, not down,” viewing the outcome as a new baseline for access to the US market.
Vietnam, with one of the largest trade surpluses and deep reliance on American demand, had little room to push back. Mark Williams at Capital Economics said the country gave up more than others might, including opening its market to large-engine American vehicles.
But that agreement may not be easy to repeat elsewhere. In India, even the prospect of opening its agriculture sector to American imports is politically volatile. Meanwhile, South Korea’s President Lee Jae-myung called the negotiations “not easy” and signaled he won’t rush a deal to meet Washington’s timeline. And in Europe, where Trump has threatened tariffs as high as 50%, talks remain stalled and combative.
If the US expects other partners to accept Vietnam-style terms, it may be in for a fight.
When deals go public and enforcement goes quiet
While the US raises tariffs on trade partners, it has stepped back from enforcing its own tech law. Earlier this year, Attorney General Pamela Bondi informed Apple, Google, Amazon, and Microsoft that the Department of Justice would not impose penalties under the foreign adversary applications law until at least September 17, 2025, the extended deadline set by the White House for handling TikTok-related actions.
Bondi said the pause follows executive orders and serves national security and foreign policy interests.
As the administration pushes trade partners to comply or face consequences, it is giving its own companies room to wait. The split between pressure abroad and restraint at home sets the tone for how the administration executes its trade policy.
A new US-UK agreement offers tariff relief even as Asia trade talks heat up. Read the full breakdown of what made it into the deal and what’s still under review.
