The Japan Times
@japantimesCompanies operating in what’s become one of the most vibrant Asian economies are on notice to move up the value chain following a trade deal between Vietnam and the U.S.
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US-Vietnam Trade Deal Imposes 40% Tariff on Transshipped Goods, Boosts Apparel Stocks, Counters China
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The United States and Vietnam have reached a trade agreement that is viewed positively for Vietnam and the broader Southeast Asian region. The deal has notably boosted apparel stocks and is expected to enhance business prospects for companies operating in Vietnam, one of Asia's most dynamic economies. A key element of the agreement is a 40% tariff on goods from other countries that are transshipped through Vietnam, a provision whose precise definition and enforcement will be crucial for Vietnam's economic impact. Washington policymakers have actively encouraged Vietnam in recent years to expand its role in U.S.
supply chains as a strategic counterbalance to China. The agreement underscores the White House's priority in current global trade negotiations: to strictly block any backdoor entry of Chinese goods into the U.S. market via third countries. This focus remains central to U.S. trade policy despite a fragile trade truce with China and delays in negotiations with other trade partners. The deal signals a push for companies in Vietnam to move up the value chain, aligning with broader U.S. strategic and economic objectives in the region.
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