US & Vietnam Strike Trade Deal: 20% Tariff on Imports
The United States and Vietnam have reportedly reached a trade agreement involving tariffs on goods imported to the U.S.
According to reports, the deal, announced by former President Donald Trump, includes a 20% tariff on Vietnamese imports and a 40% tariff on goods that are transshipped through Vietnam to avoid trade barriers. In return, the United States would receive tariff-free access to Vietnam's markets.
Key Details of the Agreement
Trump noted that the agreement was finalized before a deadline that would have reinstated higher reciprocal tariffs on imports from numerous countries. The original tariffs included a 46% tariff on Vietnamese goods. A lower, 10% tariff was temporarily in effect.
Potential Economic Impacts
Experts have predicted the tariff could increase costs for American importers, potentially affecting consumers and suppliers. A previous analysis indicated that a 10% tariff could raise the price of an imported sweater by around 8%, while a 46% tariff could increase prices by as much as 35%.