Trump cut a trade deal with Vietnam and also targeted China

President Donald Trump Vietnam gave a commercial break – and used it to pressure China.

Trump announced on Wednesday a trade agreement with Hanoi that would impose 20 % on imports from Vietnam, a decrease from the Trump rate by 46 % on “Liberation Day”. On the other hand, Vietnam agreed to allow American goods to enter the country, exempt from customs duties.

The important thing is that Trump announced a 40 % tariff on the goods that are shipped from another country via Vietnam to the United States – a step that analysts say is directly aimed at transportation from China.

“It can be said that” China’s sum “in American negotiations with other Asian economies is clear in the deal with Vietnam,” said Fishno Varathon, head of macro research in Mizuho for Asia, with the exception of Japan, in the Thursday note.

“It is clear that the intention of the United States is not to nullify the role of Vietnam as a substitute for China in a 20 % less tariff,” he added.

Vietnam has benefited from the global supply chain’s shifts away from China since Trump’s primary trade war during his first term. In response to that tariff, many multinationals, including Chinese companies, have transported manufacturing operations to low -cost centers such as Vietnam to avoid US duties.

Last year, the United States conducted a $ 123.5 billion trade deficit with Vietnam, making it the third largest trade gap in America after China and Mexico, according to the US Trade Representative Office.

Future of future commercial deals?

This step follows a temporary truce between Washington and Beijing in May, when the two sides agreed to a 90 -day stop in the tariff war. The United States reduced duties on Chinese goods from 145 % to 30 %, while China reduced its tariffs on American imports from 125 % to 10 %.

However, the transportation tariff in Vietnam confirms the Trump administration’s efforts to close the back door of Chinese exporters looking for gaps in the American market.

“The framework of customs tariffs aimed at moving while preserving the potential benefits of effective trade across border-and a model for future trade deals-if implemented transparently and associated with the rules of clear origin”, wrote to preserve the potential benefits of effective trade across the border-and a model for future trade deals-if it is implemented transparently and associated with the rules of clear origin, “wrote the framework of the potential benefits of effective trade across the border-and a model for future trade deals-if it is implemented transparently and associated with the rules of clear origin,” on Wednesday, “Wille Clemens, a policy analyst in information technology and its foundation in Washington, an unclear research institution, wrote on Wednesday.

This step also shows that Washington can prevent Chinese supply chains from extending itself to Southeast Asia.

“The future trade negotiations must also include an deterrent to the targeted transportation of the field for manufacturers and retail dealers in the United States,” Clemens wrote.

Asia in connection

Washington’s focus focuses on enforcing the transition to other Asian economies, which may find itself forced to choose the two sides.

“It will be mentioned to ignore this critical pillar in the United States commercial deals with the rest of Asia, which is trained to undermine the economic spread in China and its impact.”

The deal may also strengthen Beijing’s view that US trade negotiations lack “goodwill”. This may lead to revenge – not only against the United States, but also against the Asian economies that are seen as standing next to Washington.

“Other Asian economies will be particularly vulnerable to two -sided geographical pressure, given that their dependence on both China and the United States is important,” Varathon added.

Despite the reservations about the deal, they are still enthusiastic for investors.

the S & P 500 and Nasdak It rose to register high levels on Wednesday, and American stock futures receive gains early on Thursday.

The VN-Index, which VNNAM followed, has also increased to its highest levels since April 2022.