Will prices go up? The impact of the Trump-Vietnam deal on your clothing, technology and more

Despite claiming that every country wants to ‘kiss his ass’, President Donald Trump hasn’t been that busy announcing trade deals. While waiting for these calls, he’s been bombing Iran, slashing healthcare, and cutting benefits.

But even a blind squirrel finds a nut, and on July 2, 2025, the former reality TV star announced a trade‐deal framework with Vietnam just days ahead of the July 9 deadline for a tariff imposition, which would have seen the initial 46% levy announced in April take effect.

In a typically poorly written Truth Social post with seemingly random capitalisation, Trump announced that “I just made a Trade Deal with Vietnam” before adding some vague details: Vietnamese exports to the U.S. will face a new 20% tariff, while any “transshipped” goods—imports routed through Vietnam from a third country, mainly China—will incur a hefty 40% tariff. In return, U.S. products will enter Vietnam duty‑free, granting American exporters “total access” to the Vietnamese market.

Here’s the message in full:

“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!”

Việt Nam News reported that to organise the deal, General Secretary Tô Lâm spoke to Donald Trump over the phone on Wednesday; when asked by CNN, however, Vietnam’s US embassy did not respond for comment.

As for how this deal will affect prices, stocks for Nike, Lululemon, and Columbia Sportswear all spiked in the aftermath of the announcement, with their factories based in the Southeast Asian nation.

Vietnam shipped $137 billion worth of goods to the USA last year, making them the sixth-highest exporter, with high quantities of computers, electronics, apparel, and furniture were among the key categories. However, details are at a premium, and it’s not clear just how the tariffs will affect prices at this stage.

Related stories

Science

How detonating a nuclear bomb could save the planet

Military

Which countries spend the most on their military?

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.