U.S. and Vietnam Finalize Trade Agreement with 20% Tariffs, Plan Zero-Duty Goods

The United States and Vietnam are set to finalize a new trade agreement in the coming weeks, as outlined in a joint statement released on Sunday. The deal maintains a 20% tariff on most goods shipped from Vietnam to the United States, while establishing a framework to identify products that could eventually move toward zero duty. This tariff level was first announced in July, and the agreement keeps it in place for now, with both sides committing to a reciprocal, fair, and balanced trading relationship.

In return, Vietnam will provide preferential access for most American goods, including agreements to recognize U.S. motor vehicle safety and emissions standards, address import licensing for medical devices, and streamline regulatory approvals for pharmaceuticals. The statement emphasized efforts to strengthen supply chain resilience, combat duty evasion, and cooperate on export controls, with bilateral trade in the first nine months of this year reaching $126.4 billion, up 27% from a year earlier.

Vietnam's trade surplus with the U.S. increased to $99.1 billion from $77.2 billion in the same period, and to reduce the gap, Vietnam Airlines will purchase 50 Boeing aircraft in a deal valued at over $8 billion. Additionally, Vietnamese companies signed memorandums of understanding to buy American agricultural commodities worth an estimated $2.9 billion. The next steps involve legal procedures, signing the agreement, and preparing for implementation, though no timeline has been set for identifying zero-duty goods.