The tariff deal between the US and Vietnam, made on July 3, will have a significant impact on the sports fashion industry.
The US has reached a trade agreement with Vietnam which is seen as open to intepretation and detrimental to China.
It is the second trade deal struck by the North American powerhouse, after the one with the UK, since the US administration announced a review of arrangements with its trade partners. In 2024, the US imported about $136 billion worth of goods from Vietnam, resulting in a $123 billion trade deficit, the third largest for the US after the ones with China and Mexico.
Under the terms of the deal, US goods will enter Vietnam duty-free, while Vietnamese goods will be taxed at 20 percent if produced locally and 40 percent if they originate from other countries and re-exported to the US.
In a post on Truth Social released on July 2, the US President, Donald Trump, wrote “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,” he added.
The tariffs imposed on Vietnamese goods are less than expected and below the initial so-called reciprocal tariff of 46 percent announced by Trump on April 2. A few days later, on April 9, the US administration postponed for 90 days the application of reciprocal tariffs for most countries in order to hammer out trade agreements.
But the 40 percent tariff on re-exported goods is seen as possibly causing friction with China, which uses Southeast Asia countries as a gateway to export goods.
Read the complete article at our sister web Shoe Intelligence.
