U.S. and Vietnam Reach Trade Agreement on Reciprocal Tariffs After Negotiations

The United States and Vietnam reached a trade agreement in 2025 following months of intensive negotiations aimed at stabilising bilateral commerce and managing tariff tensions after the U.S. announced broad reciprocal tariffs earlier in the year. Under the Framework Agreement on Reciprocal, Fair and Balanced Trade, both sides committed to a tariff structure that balances market access and trade fairness. The United States agreed to maintain a 20 % reciprocal tariff on most Vietnamese exports, significantly lower than earlier proposed rates, while Vietnam committed to removing tariffs on virtually all U.S. imports, opening its domestic market to American industrial and agricultural goods. The agreement also includes provisions to address non-tariff barriers, streamline regulatory approvals for U.S. products, and align some technical standards, improving conditions for exports and investment. Vietnam’s willingness to reduce its own import levies and adopt regulatory changes was part of broader diplomatic efforts to maintain strong economic ties with the United States, which is one of Vietnam’s largest export markets. Although the 20 % tariff still represents a cost for Vietnamese exporters, it was widely seen as a compromise that avoided higher levies and preserved crucial market access. Both governments signalled that follow-up discussions would continue to finalise technical details and monitor implementation, reinforcing a shared interest in long-term trade cooperation and economic stability in the Asia-Pacific region.