A fraught, high-stakes trade pact between the US and Vietnam is triggering alarm across Asia, after President Donald Trump announced proposed tariffs that remained unconfirmed by Hanoi, while Beijing warned of economic retaliation.
The deal, as described by Trump, would impose a 20% tariff on Vietnamese exports and a 40% levy on goods deemed to be transshipped through Vietnam; the move is widely seen as targeting Chinese exports. However, no official documents have been released at the time of this writing, and negotiators on both sides are still finalizing the terms. Vietnamese industry leaders say the announcement “left us with a lot of questions,” according to Bloomberg. Beijing has warned of “resolute countermeasures” if the agreement harms its interests.
A big headline, a blank footnote
The announcement about the US trade deal with Vietnam came directly from President Trump on Truth Social, not from Hanoi or the White House press office. He framed the pact as a breakthrough: a 20% tariff on Vietnamese exports, a 40% tariff on transshipped goods, and “TOTAL ACCESS” for US products entering Vietnam at zero tariff.
But behind the post, key terms remain unresolved. Vietnamese officials say talks are still ongoing, with both sides “coordinating and exchanging views to concretise” what was discussed between the two leaders, according to the Ministry of Foreign Affairs. State media described the outcome as a “Framework Agreement for Reciprocal, Fair and Balanced Trade,” but offered no confirmation of the specific tariff figures Trump cited.
Beijing pushes back, warning of ‘unilateral bullying’
China has sharply criticized the trade agreement, calling it a provocation that risks undermining regional stability. The Chinese Ministry of Commerce condemned Washington’s reciprocal tariff strategy as a “typical act of unilateral bullying” and warned it would “resolutely take countermeasures to safeguard its legitimate rights and interests” if the deal harms China.
The Chinese Foreign Ministry reinforced that position, with spokesperson Mao Ning stating that trade agreements should not target or harm the interests of any third party. Analysts in Beijing, including He Weiwen of the Center for China and Globalization, said the pact appears to violate WTO’s non-discrimination principle and proves that the US strategy is to prioritize its own interests at the expense of others.
Optimism, confusion, and wait-and-see
Vietnam’s business community responded to the US trade deal with a mix of cautious optimism and unresolved questions. Some industry leaders welcomed the relief from the earlier 46% tariff threat.
“We need more clarity to fully understand how this 20% tariff will be applied across different products and sectors,” said Ngo Sy Hoai, vice chairman and general secretary of the Vietnam Timber and Forest Product Association, Bloomberg reported. He added that Trump’s announcement “left us with a lot of questions.”
Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told Bloomberg the lack of detail left room for widely different interpretations. “The answers to these questions can be the difference between celebrating or crying.”
Le Hang of the Vietnam Association of Seafood Exporters and Producers, speaking to The Washington Post, said the fishing industry had hoped for better terms. With a 20% duty, she warned, Vietnamese seafood producers would struggle to compete with rivals like Ecuador, which face a lower 10% tariff.
On the whole, industry voices struck a wait-and-see tone — relieved to avoid the worst-case outcome but cautious about a deal still short on specifics.
Between tariff deals and supply chain crackdowns, Trump is still negotiating with Beijing. Read about the recent US rare earth trade agreement with China.