Today, July 2, 2025, President Trump announced a preliminary trade framework that lays the groundwork for a broader trade agreement between the U.S. and Vietnam.

The U.S. will impose a 20% tariff on most Vietnamese imports—down from the proposed 46%. Goods suspected of being transshipped from China, or other nations with “higher tariffs,” will face a 40% tariff. In exchange, Vietnam has agreed to eliminate tariffs on a wide range of U.S. exports, including vehicles, agricultural goods, and consumer products.

For context, the US imports about $130B per year from Vietnam while the US exports just 10% of that total today.

The framework also introduces stricter rules of origin to crack down on Chinese goods being routed through Vietnam. Vietnam has committed to reducing its reliance on Chinese inputs and to better cooperation on Customs enforcement.

A final trade deal is still in progress, but this framework is likely to impact sourcing, Customs compliance, and cargo routing.

Shapiro is closely monitoring the current trade environment and will keep you apprised of any changes or updates as they arise.