Additionally, goods from other countries that pass through Vietnam on their way to the U.S. will be charged a higher 40% tariff, Trump announced. The U.S. had made combating so-called transshipment of goods—particularly those originating from China—a priority in its negotiations with Vietnam.

Trump also heralded U.S. access to Vietnam’s markets tariff-free—something Lovely described as not a heavy lift as U.S. exports don’t present a competitive threat to domestic manufacturers and many U.

President Donald Trump’s new trade deal with Vietnam sends a clear signal about where US tariffs on Chinese goods might ultimately land, as talks between Washington and Beijing continue following their recent truce.