Trump says U.S. struck trade deal with Vietnam that imposes 20% tariff on its imports

President Donald Trump said Wednesday that the United States has struck a trade woody with Vietnam that includes a 20% tariff connected the Southeast Asian country's imports to the U.S.

Trump's announcement connected Truth Social said that the woody volition springiness the U.S. tariff-free entree to Vietnam's markets.

Vietnam besides agreed that goods would beryllium deed with a 40% tariff complaint if they originated successful different state and were transferred to Vietnam for last shipment to the United States.

The process, known arsenic transshipping, is utilized to circumvent commercialized barriers. China, a apical exporter to the U.S., has reportedly utilized Vietnam arsenic a transshipment hub.

Trump wrote that "Vietnam volition pay" that 20% duty, but tariffs are taxes connected overseas goods that are paid by the importers of those products.

The statement was unveiled little than a week earlier a 90-day intermission connected galore of Trump's alleged reciprocal tariffs was acceptable to expire, sending U.S. duties connected imports from dozens of countries soaring.

Under that protectionist commercialized plan, Vietnamese imports to the U.S. were taxable to a 46% broad tariff. That complaint was lowered to 10% during the 90-day interim. Raising the tariff connected Vietnamese goods to 20% volition hike costs for U.S. importers, which could beryllium passed connected to consumers oregon suppliers.

The S&P 500 nevertheless roseate somewhat connected quality of the commercialized deal.

Read Trump's afloat post:

"It is my Great Honor to denote that I person conscionable made a Trade Deal with the Socialist Republic of Vietnam aft speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It volition beryllium a Great Deal of Cooperation betwixt our 2 Countries. The Terms are that Vietnam volition wage the United States a 20% Tariff connected immoderate and each goods sent into our Territory, and a 40% Tariff connected immoderate Transshipping. In return, Vietnam volition bash thing that they person ne'er done before, springiness the United States of America TOTAL ACCESS to their Markets for Trade. In different words, they volition "OPEN THEIR MARKET TO THE UNITED STATES," meaning that, we volition beryllium capable to merchantability our merchandise into Vietnam astatine ZERO Tariff. It is my sentiment that the SUV or, arsenic it is sometimes referred to, Large Engine Vehicle, which does truthful good successful the United States, volition beryllium a fantastic summation to the assorted merchandise lines wrong Vietnam. Dealing with General Secretary To Lam, which I did personally, was an implicit pleasure. Thank you for your attraction to this matter!"

It was unclear from Trump's station erstwhile the woody volition instrumentality effect, oregon if it has been officially signed by some parties. CNBC attempted to corroborate the tariff rates with White House aides, who said much accusation would beryllium forthcoming but did not repetition the president's numbers.

Trump has signaled that helium whitethorn disregard oregon revise the upcoming deadline for his reciprocal tariffs to drawback backmost higher. The 90-day pause, which lowered tariffs connected astir each different countries to a broad 10% rate, was imposed successful aboriginal April to springiness countries breathing country portion they negociate deals with the U.S.

With the deadline approaching, the Trump medication has lone struck revised commercialized frameworks with China and the United Kingdom, though it has repeatedly said the U.S. is adjacent to deals with galore different countries.

Vietnam, whose exports to the U.S. reportedly comprised 30% of its gross home product past year, is particularly susceptible to Trump's tariffs.

Critics of Trump's unpredictable tariff policies pass that the duties make economical uncertainty and volition effect successful higher prices for U.S. consumers. The Trump medication and its defenders antagonistic that tariffs bash not origin ostentation and enactment that the president's duties person brought successful billions of dollars to the U.S. government.

A pricing exemplary created for CNBC this period by retail consulting radical AlixPartners recovered that a 10% U.S. tariff connected Vietnamese goods would origin the terms of an imported men's sweater to emergence by astir 8%. Under the 46% tariff Trump initially slapped connected Vietnam, the terms of that aforesaid sweater would emergence astir 35%, the radical found.

U.S. Federal Reserve Chairman Jerome Powell said Tuesday that officials expect that the impacts of Trump's tariffs volition commencement to amusement up much during the summertime months.

Prices connected definite items, including apparel and footwear, are already ticking higher arsenic a effect of the tariffs, CNBC has reported.

Some analysts judge the lack of a wide impact connected U.S. prices truthful acold is the effect of pre-tariff stockpiling by companies, arsenic good arsenic the clip it takes for those tariffs to amusement up successful the economy.

— CNBC's Courtney Reagan contributed to this report.