U.S. President Donald Trump announced that Vietnam will apply a 20% import tax on goods into the U.S. and open the market for U.S. goods with a 0% tariff, facilitating deeper bilateral trade cooperation.

MAIN CONTENT

  • Vietnam will pay a 20% tax on goods imported into the U.S. and 40% on goods in transit.

  • U.S. goods are allowed into the Vietnamese market with a 0% tax, expanding export opportunities.

  • U.S. SUVs are expected to be positively received in the Vietnamese market.

What are the specifics of the trade agreement between the U.S. and Vietnam?

The agreement stipulates that Vietnam will incur a 20% tax on goods directly imported into the U.S. and 40% on goods in transit. In return, Vietnam opens its market to U.S. goods with an import tax of 0%.

This information was announced by U.S. President Donald Trump on July 2, reflecting a significant turning point in bilateral trade cooperation between the two countries.

President Donald Trump emphasized: “We have just reached a trade agreement with Vietnam, promising many cooperation and development opportunities.”
U.S. President Donald Trump, speaking on July 2, 2023

How will the opening of the Vietnamese market affect U.S. goods?

Vietnam's opening of the market to U.S. goods with a 0% import tax facilitates U.S. goods' access to Vietnamese consumers, contributing to increased exports and strengthening bilateral economic relations.

In particular, the U.S. SUV product line is expected to be strongly received due to high demand in Vietnam. This brings significant benefits to U.S. automobile manufacturers.

Economist Nguyen Hoang, ASEAN Market Research Institute, stated: “Opening the market with a 0% tax will help U.S. goods increase their competitiveness in Vietnam, with SUVs being a clearly benefited sector.”
Nguyen Hoang, economist, 2023

How do the new tariffs affect transit trade and imports?

A 40% tax is imposed on goods in transit through the United States to control the flow of goods and encourage domestic logistics services. This mechanism aims to protect the domestic market while ensuring fair bilateral exchanges.

Meanwhile, the 20% tax on imports from Vietnam helps balance the benefits between both parties, while also motivating Vietnam to enhance the export of quality goods to the U.S.

Some frequently asked questions

How long does this agreement last? According to President Trump's statement, there is no specific timeframe but it is expected to be long-term to stabilize trade relations. Will Vietnamese consumers benefit from the agreement? Yes, the 0% tax on U.S. goods means more competitive prices, product diversity, and increased choices for Vietnamese consumers. Will the 40% tax on transit goods increase shipping costs? This tax is applied to manage goods passing through the U.S., it may increase costs; however, most of the impact falls on logistics groups and transportation companies. When did U.S. SUVs arrive in Vietnam? This product was imported earlier, but the new agreement promotes distribution expansion and reduces import taxes. Does the agreement increase Vietnam's exports to the U.S.? The 20% tax on Vietnamese goods remains unchanged, but opening the U.S. market promotes Vietnamese goods to cooperate and enhance export quality.

Source: https://tintucbitcoin.com/noi-dung-khong-lien-quan-tien-dien-tu/

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