The White House announced on October 26 that the United States and Vietnam have reached a framework agreement that could finalize trade negotiations within weeks, paving the way for potential tariff reductions on Vietnamese imports to the U.S.
In a joint statement, the White House revealed that the two nations have agreed on a framework for a mutually beneficial, fair, and balanced accord.
This development follows U.S. President Donald Trump’s July directive to impose a 20% tariff on Vietnamese goods and a 40% tariff on products routed through Vietnam from third countries.
The anticipated trade agreement is expected to maintain the 20% tariff level but is likely to include exemptions for certain goods, effectively lowering the overall tariff burden.
Vietnam recorded a substantial 123 billion USD trade surplus with its largest market, the United States, in the previous year.
Both countries have committed to ongoing discussions regarding non-tariff barriers, with Vietnam agreeing to recognize U.S. standards for automotive safety and emissions.
Moreover, they plan to continue discussions on import licensing for American medical devices and have pledged to uphold international intellectual property protection agreements.
