Vietnamese firms are set to sign five memorandums of understanding to purchase over $2 billion in U.S. agricultural products, including $800 million from Iowa over the next three years. The deals, announced during a visit to the United States by Vietnam's Minister of Agriculture and Environment Do Duc Duy, focus on commodities such as soybean meal, corn, wheat, dried soybeans, and dried distillers’ grains.
The agreements are part of Vietnam's efforts to address its significant trade surplus with the United States and to avoid a threatened 46 percent tariff on its exports proposed by President Donald Trump. The new purchases from Iowa represent a substantial increase from the previous average of $44 million per year.
Vietnam currently holds the third-largest trade surplus with the United States, behind China and Mexico. In 2024, the U.S. registered a $123 billion trade deficit with Vietnam. Last year, Vietnam imported $3.4 billion in U.S. farm goods while exporting $13.68 billion of its own agricultural products to the U.S.
The agricultural deals are part of broader trade negotiations, with a third round of talks scheduled. Vietnamese officials have also met with representatives from American companies such as Lockheed Martin, SpaceX, and Google, and signed an agreement with Westinghouse Electric on nuclear power cooperation. Vietnam has pledged to crack down on counterfeits and digital piracy.
In addition, the Trump Organization broke ground last month on a $1.5 billion luxury resort and golf course near Hanoi, with Eric Trump attending the ceremony. The organization is also scouting locations for a potential Trump Tower in Ho Chi Minh City.
JUST PUBLISHED: Trump Tariff Triumph as Vietnam Signs Deals Worth $2bn to American Farmers. PULSE POINTS:
❓What Happened: Vietnam has agreed to purchase over $2 billion in U.S. agricultural products in an effort to ease trade tensions and avoid a 46 percent tariff threatened by
American farmer sentiment jumped to a four-year high, with growers betting on rising crop exports as the Trump administration pushes for more trade deals from Vietnam to Italy