Trump says trade deal clinched with Vietnam

President Trump said Wednesday he struck a trade deal with Vietnam, a key Asian trading partner that American companies rely on as an alternative to Chinese-made goods.

Mr. Trump said under the deal the U.S. will charge a 20% tariff on Vietnamese imports. Vietnam had faced a 46% tariff under a plan that Mr. Trump outlined in April.

“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will ’OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that we will be able to sell our product into Vietnam at ZERO Tariff,” Mr. Trump wrote on Truth Social.

Mr. Trump said Vietnam would pay a 40% levy of transshipping, a process in which goods are transferred from one vessel to another.

The president said he thinks sport utility vehicles and other large-engine vehicles will be “a wonderful addition to the various product lines within Vietnam.”

The deal signaled progress on trade ahead of a July 8 deadline for dozens of trading partners to sign agreements with the White House or face hefty levies.

Mr. Trump announced sizable “Liberation Day” tariffs on a suite of countries on April 2, only to pause the levies for 90 days to ease market tensions and allow space for negotiations.

So far, only the U.K. has finalized a deal with the White House during the pause, though Mr. Trump says India is nearing the finish line with his team.

Vietnam is a major manufacturing hub for shoes, clothing and other items. Some U.S. companies moved their supply chains from China to Vietnam as tensions between the U.S. and China increased in recent years.

Mr. Trump says other countries will be assigned a tariff number if they can’t ink agreements with the U.S.

For instance, the president said Japan might have to accept a new tariff, calling the Asian country “spoiled” and unwilling to agree to suitable terms with his team.

Tariffs are a tax or duty paid by importers on goods they bring in from foreign markets.

Mr. Trump says tariffs are a great way to force companies to return to America or keep their operations in the U.S., employ American workers and create revenue to fund domestic programs.

Foreign countries don’t pay the tariffs directly to the U.S. Treasury. In many cases, U.S. companies will pay the levies, and they might pass on at least some of the cost to consumers through higher prices.