Trump tells the victory of Vietnam’s commercial deal – but the details about the transition and pledges are still unclear
with Less than a week To go before the deadline imposed by the United States on July 9 for new commercial deals, US President Donald Trump revealed a new trade deal with Vietnam, a country that has become one speed from Elderly Sources of the United States
On Wednesday, Trump in fact announced, Social, the social media platform, that the United States will impose a 20 % tariff on Vietnamese exports to American goods that were transported through Vietnam, will get a 40 % imposition.
On the other hand, Trump claimed that Vietnam will drop all customs duties on American goods and “open its market to the United States”, noting the SUVs made by the United States as a “wonderful addition” to Vietnam’s roads.
The VN-Index Vietnam Index increased by 0.5 %, as of 1:00 pm East. American companies shares with major manufacturing in Vietnam Rose. Nike rose 4 %, while Apple jumped by 2.2 %.
Vietnamese government media Reports For Lam, the Secretary -General of the Communist Party in Vietnam and the country’s leader spoke with Trump on Wednesday to discuss customs tariff negotiations. According to the report, the United States “will significantly reduce the mutual definitions of many Vietnamese imports”, and Trump “of high value” Vietnam pledged to grant access to the preferential markets of American goods, including large engines. According to Washington, Lam Washington urged to raise export restrictions on some high -tech commodities.
The deal makes Vietnam one of the few governments that have reached an agreement with Washington since April 2, or “Editing Day.” Trump concluded a deal with the United Kingdom in early May, and reached a trade truce with Beijing last week.
However, the details of the American Trade and Vietnam Agreement are vague. “Interpretation of the transition is unclear,” DBS wrote in a research note.
Transharsment indicates a practice where the goods are transported from one ship to another before shipping to their final destination. However, the Trump administration accuses Vietnam of being a back door for Chinese goods to evade American definitions.
Illegal transport usually involves changing the certificate of origin to a new country, without adding a large value.
Vietnam turned into Main manufacturing center For global supply chains. Apple, Nintendo and other electronics manufacturers have transferred the final assembly of its products to Vietnam, both to avoid American definitions on China and diversify their supply chains.
These components often come from Chinese suppliers, but manufacturers who take a headquarters for it also add value through the final assembly, before shipping goods to the United States
“I think the conditions are still under development. This is likely to serve as a framework,” says Deborah Emles, head of commercial policy at the Hinrich Foundation.
The details of the agreement can also be transformed between Trump’s advertisement and when the formal character is grabbed through an executive order. This process may take weeks: The United States and the United Kingdom announced its deal in early May, which was not official until mid -June.
“The details will be very important,” warns Els. “Based on the product and the manufacturing process, the rate may be less or much higher, up to 40 %. The uncertainty will continue for some time.”
It may be a significant increase in US SUV purchases for Vietnamese consumers. the middle The monthly income of the Vietnamese worker is about $ 320, which is much lower than the ordinary American worker.
Vietnam’s largest purchases from the United States were computers, electronic products, machines and tools, according to Vietnam government data. The country is likely to import these goods to support their electronics manufacturing.
A 20 % tariff is less severe than the 46 % proposed average for the first time in early April. However, it still makes trade frictions between the United States and Vietnam. It is also twice the basic tariff rate by 10 % imposed on all imports.
Vietnam was very exposed to the United States, where 30 % of her exports went there, according to DBS.
DBS predicts the presence of a possible short -term gathering in the stock markets in Vietnam before issuing the GDP for the second quarter, which the country’s deputy prime minister indicates that it will be 7.6 % on a strong annual basis. “However, Brace for Signs of the Slowdown Express should be dispelled, the bank warns.
