In a major "America First" policy move, the pact demands unprecedented U.S. market access and imposes a 20% "reciprocal tariff" on Vietnam, exempting only key strategic products.
KUALA LUMPUR, MALAYSIA – President Donald J. Trump today officially unveiled the "U.S.–Vietnam Framework for Reciprocal, Fair, and Balanced Trade," a landmark agreement he heralded as a core victory for his "America First" agenda.
According to the U.S. Department of Commerce, bilateral trade reached $123.5 billion in 2024, with the U.S. currently suffering its third-largest goods trade deficit with Vietnam. This new agreement is explicitly designed to narrow that gap.
"From day one, I have challenged the assumption that American workers must be disadvantaged by unfair trade deals," President Trump said in his statement. "Today, we prove that America can both protect domestic manufacturing and expand international markets. This is a victory for fairness, for reciprocity—and it is a testament to the power of the American economy."
Here are the key pillars of the new framework.
1. The "Reciprocal Tariff" and "Strategic Zero" Rate
In a radical departure from past trade deals, the framework is built on a foundation of "reciprocal" tariffs.
Vietnam’s Concession: Vietnam has committed to the near-total elimination of its import tariffs on U.S. goods, including a massive opening for American agriculture and food exports.
U.S. Position: The U.S. will maintain a 20% reciprocal tariff on Vietnamese imports.
The Strategic Exception: This 20% U.S. tariff will be waived (set to 0%) for strategic products listed in Appendix III of Executive Order 14346 (Sept. 5, 2025). This move is designed to incentivize Vietnam to align its high-tech and defense-related supply chains with the United States.
2. Dismantling Vietnam's Non-Tariff Walls
The agreement aggressively targets the "non-tariff barriers" that have long frustrated U.S. exporters. Vietnam has committed to:
Accept U.S. Standards: Recognize U.S. safety and emissions standards for motor vehicles.
Allow Remanufactured Goods: Open its market to U.S. remanufactured goods, a key American industry.
Fast-Track U.S. Pharma: Expedite import approvals for U.S. medical devices and pharmaceuticals that are already legally approved for sale in the United States.
Protect Intellectual Property: Fully enforce international IP treaties, including the WIPO Internet Treaty.
3. Major Wins for American Farmers and Tech
The framework secures major openings for two critical U.S. sectors.
Agriculture: Vietnam will now recognize the U.S. inspection and certification system for agricultural goods. This will permit flexible, streamlined access for U.S. meat, cheese, and produce, with a specific win for U.S. peaches and nectarines.
Digital Trade: Vietnam has agreed to not impose customs duties on electronic transactions, will not require permits for cross-border data transfers, and will support a permanent moratorium on e-commerce taxes at the WTO.
4. Strategic Alignment: Supply Chains and State-Owned Enterprises
Underscoring the geopolitical stakes, the pact includes strong commitments on economic security.
Both nations will cooperate to enhance supply chain resilience, crack down on customs fraud (a move to prevent transshipment of goods from other nations), and coordinate on strategic export controls.
Critically, Vietnam also commits to tackling the market-distorting practices of its State-Owned Enterprises (SOEs) in international trade, a long-standing U.S. demand.
5. The Path to Prosperity
The framework also recognized new commercial deals in agriculture, aviation, and energy, which will significantly increase U.S. exports to Vietnam.
The White House frames this agreement as a major step in its strategy of "disentangling America from unfair trade practices," securing U.S. economic leadership in the critical Southeast Asia region. In the coming weeks, both nations will finalize the text for an official signing.