VIETNAM’S TARIFF DEAL WITH TRUMP SPARKS CONFUSION, NOT CLARITY

Vietnam rushed to strike a deal before Trump’s July 9 tariff deadline — avoiding a crushing 46% tariff and securing a 20% blanket rate… but with no finalized text, no clear product list, and rising anxiety in its $123B export sector.

🔹 A vague “transshipment” clause could trigger 40% tariffs on goods using Chinese materials — a nightmare for Vietnam’s garment industry, which relies on China for 70% of raw materials.

🔹 Big brands like Adidas and Calvin Klein are in limbo. Some orders have already dropped 15–20%.

🔹 PM Pham Minh Chinh is scrambling for clarity before the August 1 reset, urging U.S. companies to push for recognition of Vietnam as a market economy.

The risk? A major hit to Vietnam’s manufacturing edge and rising U.S. inflation from costlier imports.

No deal is better than a vague one? Time will tell.

#Vietnam #Tariffs #USTradePolicy #TrumpTariffs #GlobalEconomy