Name: What Trump’s Deal with Vietnam Says About His Trade Talks
Uploaded: 2025-07-03T13:56:00Z
Duration: 3 min 1 s
Description: WSJ Senior Reporter Jon Emont explains what we know about President Trump’s trade deal with Vietnam and what it says about his negotiations.

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WSJ Senior Reporter Jon Emont explains what we know about President Trump’s trade deal with Vietnam and what it says about his negotiations. Photo: WSJ; Nhac Nguyen/AFP/Getty Images

https://m.wsj.net/video/20250703/f6000a7a-c2bc-40a6-b2dd-6e0336466153/2/hls/manifest-hd-wifi.m3u8

WSJ Senior Reporter Jon Emont explains what we know about President Trump’s trade deal with Vietnam and what it says about his negotiations.

What Trump’s Deal with Vietnam Says About His Trade Talks

The Vietnam deal tells us that Trump is serious about tariffs. That if there was any thought that, you know, maybe he was going to postpone, postpone, postpone. And then ultimately, except for China, countries really weren't going to face tariffs. I think we have a lot more reason to be skeptical of that potential outcome.

We have a lot of great things going and we're getting along with countries, but some will be disappointed because they're gonna have to pay tariffs.

According to Donald Trump's post on Truth Social, "The United States will impose a 20% tariff on Vietnamese goods entering United States, and Vietnam will drop tariffs on American goods." There is a slight wrinkle, which is that any goods that are transshipped through Vietnam to the United States will face a double tariff of 40%. The deal has the potential to upset China because of this transshipment business. A lot of Chinese components make their way to Vietnam and are integrated into goods that Vietnam sells to the United States. Chinese fabrics are used in Vietnamese clothing that's exported to the United States. Chinese components go into electronics that are assembled in Vietnam and sent to the United States. Charging a higher tariff rate on goods that are made and assembled in Vietnam but include foreign components, that could be read as an effort to target Chinese producers and potentially make them less competitive.

Everybody. Everybody wants to make a deal and have a part of it, right?

I wouldn't rule anything out, but what we have seen so far is that these deals are harder to strike than maybe people in the White House originally thought. And they did set a pretty swift deadline of July 9th to strike deals with a range of nations. And Japan was one of those nations that people thought that there would be a deal pretty quickly just given the very close ties between the United States and Japan and that there's no signs that any deal is imminent.

We've dealt with Japan. I'm not sure if we're gonna make a deal. I doubt it with Japan, they're very tough. You have to understand, they're very spoiled.

So this is sort of a furious period. We see, you know, a lot of signs of last minute negotiations. From what I've heard, not every country is certain how seriously to take this July 9th deadline. The fact that there was Vietnamese announcement could make some countries eager to speed things up at the risk that they could face even heavier tariffs, if they don't strike a deal. What Vietnam has showed us is that these third-party countries, these alternatives to China, will actually face significant tariffs 'cause 20% is a significant tariff. And what that means is ultimately that tariffs are going to be quite high on a lot of the America's big trading partners. And that's going to have an impact on things like consumer prices.

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