Hanoi commits to near-total market access for U.S. goods and makes a "down payment" with over $10.9 billion in new deals for Boeing jets and U.S. farm products to rebalance trade.
WASHINGTON – The United States and Vietnam have agreed to the framework of a new, hard-nosed trade pact that locks in President Donald Trump’s "America First" tariff policy while offering Hanoi a strategic path to exemptions, the White House announced on Sunday.
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| East Timor's Prime Minister Xanana Gusmao and Cambodia's Prime Minister Hun Manet look on as Vietnam's Prime Minister Pham Minh Chinh greets U.S. President Donald Trump during a group photo at the 47th Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur, Malaysia, October 26, 2025. REUTERS/Evelyn Hockstein |
The new "U.S.–Vietnam Framework for Reciprocal, Fair, and Balanced Trade" will maintain the sweeping 20% tariff on most Vietnamese goods that President Trump imposed in July. However, in a major new development, Washington will create a "whitelist" of certain Vietnamese products to be decided at a later stage where the punishing levy will be reduced to zero.
This "carrot and stick" approach is not a free concession. In return, Vietnam has committed to offering "preferential access" for "most all" U.S. goods, effectively eliminating its own tariffs on American exports.
The agreement, which the countries said will be finalized in the "coming weeks," is a direct and aggressive move by the Trump administration to tackle one of the U.S.'s largest and fastest-growing trade deficits, which stood at $123 billion last year.
The "Down Payment": Over $10.9B in New Deals
To prove its commitment to narrowing the massive trade gap, Vietnam has already put its money on the table.
The White House statement highlighted that as part of the new framework's goodwill, Vietnam has moved to make significant high-profile purchases of American products.
Aviation: Vietnam Airlines, the country's flag carrier, has agreed to purchase 50 aircraft from Boeing in a deal valued at over $8 billion.
Agriculture: Vietnamese companies have also signed twenty Memorandums of Understanding (MOUs) to purchase U.S. agricultural commodities worth an estimated $2.9 billion.
These deals are a tangible "down payment" to immediately boost U.S. export numbers as the trade surplus with Vietnam widened to $99.1 billion in just the first nine months of this year.
Dismantling Vietnam's "Non-Tariff Wall"
Beyond just tariffs, the U.S. secured major concessions on regulatory barriers that have historically frustrated American exporters. Vietnam has agreed to:
Accept U.S. Auto Standards: Recognize vehicles built to U.S. motor vehicle safety and emissions standards, opening a key door for American car manufacturers.
Fast-Track U.S. Medical Goods: Address the "issue of import licenses" and streamline regulatory approvals for U.S. medical devices and pharmaceutical products.
Protect Intellectual Property: Fully implement its obligations under key international IP treaties.
"The agreement will provide both countries' exporters unprecedented access to each other's markets," the joint statement declared.
Strategic Alignment on Supply Chains
The framework also has clear geopolitical underpinnings. The new 0% tariff "whitelist" is expected to be used as leverage to ensure Vietnam aligns with U.S. economic security goals.
Both nations committed to "strengthen cooperation" to "enhance supply chain resilience," a clear signal of Washington's desire to build reliable supply chains outside of China.
Critically, the deal also targets "duty evasion." This addresses a major U.S. complaint that Chinese goods are being routed through Vietnam to circumvent U.S. tariffs. President Trump's July order included a separate 40% levy on such trans-shipments, which remains a key part of the new enforcement mechanism.
In the coming weeks, negotiators will finalize the text for an official signing, hammering out the most crucial detail: which Vietnamese products will be granted the coveted zero-duty status.
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