Description: President Donald Trump has stated the US secured a trade deal with Vietnam for zero tariffs on US exports to Vietnam and a 20% levy on Vietnamese exports to the US, compared to the imposed 46%. The deal is the first that Trump has secured with any Asian country, while Japan and South Korea are still struggling to negotiate their separate trade deals. The deal would also tackle the issue of transshipping which used Vietnam as a transporting hub for shipping products originating from other countries but mostly China. Chinese officials haven’t issued a public statement as they previously claimed that they would react to any negative trade agreement impacting China’s global and regional national interests.
Impact: The trade deal would mostly benefit the US, as Vietnam is also part of the ASEAN economic bloc, despite being extensively dependent on bilateral trade with the US. Trade negotiations with China, South Korea and Japan would be impacted by the trade deal, as indications of tariffs raising might prompt other countries except China to agree towards larger concessions in the negotiations going forward. Trump’s 09 Jul self – imposed tariff deadline could be potentially extended, as most of the crucial trade agreements Trump aimed at securing are still falling behind due to unresolved disputes that surpass the trade negotiations framework such as defense cooperation.