US lowers tariffs on Vietnamese imports to 20%

The US has officially reduced reciprocal tariffs on Vietnamese imports from 46% to 20%, the Vietnamese Ministry of Industry and Trade (MoIT) announced on August 1.

The updated tariff rate was outlined in an Executive Order signed by President Donald J. Trump on the same day (Vietnam time), which revised trade terms for 69 countries and territories listed in Annex I of the order.

According to the MoIT, the two countries will continue negotiations toward a reciprocal trade agreement based on principles of openness, equality, mutual respect for sovereignty and political systems, shared benefits, and consideration of each other's development levels.

The agreement is expected to strengthen stable and mutually beneficial economic, trade, and investment ties in line with the US–Vietnam Comprehensive Strategic Partnership.

Since April, Vietnam and the US have conducted multiple rounds of trade negotiations, including both technical and ministerial-level discussions.

Data from US Customs shows that bilateral trade between the two countries reached $149.7 billion in 2024. Vietnam exported $136.6 billion worth of goods to the US and imported $13.1 billion.

In the first five months of 2025, two-way trade surged by 36.5% year-on-year to $77.4 billion. Vietnam’s exports rose 37.3% to $71.7 billion, while imports increased 30.7% to $5.7 billion. With a trade surplus of $64.8 billion, up 29%, Vietnam currently ranks as the fourth-largest trade surplus holder with the US, after China, Mexico, and Iceland.