Vietnam and the United States are moving closer to a bilateral trade agreement, with Deputy Prime Minister Bui Thanh Son saying on Wednesday that both sides aim to sign the deal soon. Negotiations in Washington this week follow an October pledge to finalise an accord that would maintain a 20% U.S. tariff on Vietnamese imports but exempt select products under a new duty imposed by President Donald Trump in August.
The talks come as Washington seeks to rebalance trade flows with Hanoi, which posted a $111 billion surplus with the U.S. in the first ten months of 2025 America’s largest trade gap after China and Mexico.
Why It Matters
The deal marks a strategic moment in U.S.-Asia economic relations, as Washington tries to narrow its trade deficit and diversify supply chains away from China. For Vietnam, securing tariff exemptions would protect key exports like textiles, coffee, and electronics, while strengthening its image as a reliable trade partner amid global protectionist shifts.
Recognition by Washington as a market economy and the lifting of high-tech export restrictions remain top priorities for Hanoi.
Vietnam: Deputy PM Son urged U.S. companies to back Vietnam’s negotiation efforts and support a potential summit between President Trump and Vietnamese leader To Lam to mark the signing.
United States: Assistant Secretary of State Michael DeSombre said the agreement should ensure “fair and balanced trade” and reduce America’s deficit, noting Vietnam’s potential in critical mineral supply chains such as rare earths and gallium.
Business Community: U.S. firms see the talks as a chance to expand access to Vietnam’s growing consumer market, particularly in automotive and agriculture sectors.
What’s Next
Vietnam’s delegation, led by Trade Minister Nguyen Hong Dien, is negotiating the list of tariff-exempt items and preferential access for U.S. goods. The timing of the deal may hinge on the U.S. Supreme Court’s ruling on the legality of Trump’s tariffs, expected before mid-2026.
Both sides hope to finalise the pact by December, potentially paving the way for a high-profile Trump-To Lam meeting. Success could cement Vietnam’s role as a key U.S. economic partner in Asia and offer a blueprint for future trade recalibrations.
With information from Reuters.
