Overview

• The July 3 agreement replaces a looming 46% levy with a 20% tariff on Vietnamese exports and a 40% surcharge on suspected Chinese transshipments
• Hanoi has agreed to zero tariffs on all U.S. imports and to grant preferential market access in sectors such as large-engine vehicles, poultry and industrial goods
• Vietnam’s Ministry of Industry and Trade has stepped up origin inspections and deployed a digital tracking system to enforce the new transshipment rules
• Spokespeople for China’s Commerce and Foreign Ministries warned they will take countermeasures to protect Chinese trade interests if the deal harms them
• With the July 9 pause on reciprocal tariffs expiring, Japan and South Korea are racing to secure similar bilateral accords to avoid steep duties