President Donald Trump announced today via Truth Social that the United States and Vietnam have reached a landmark trade agreement.

Vietnam will devise measures to improve product quality to cope with potential risks from U.S. tariffs, as it seeks to expand exports to other markets and reduce its reliance on the United States, the country's deputy trade minister said on Wednesday.

The US trade agreement with Vietnam reportedly lowers tariffs but lacks detail, triggering sharp warnings from Chinese officials.

At the heart of Trump’s latest trade deal with Vietnam and talks with other trading partners is an effort to counter what he sees as China’s unfair practices to circumvent U.S. tariffs.

Vietnam will soon sign an agreement with Indonesia to boost long-term rice shipments, the Vietnamese government said on Tuesday in a statement, after exports plunged in the first half of the year. The statement came hours after Vietnamese Prime Minister Pham Minh Chinh met Indonesian President Prabowo Subianto on the sidelines of the BRICS summit in Brazil.

Kamal stated that Vietnam aims to increase its global trade volume from the current $800 billion to $1 trillion—a goal that presents significant opportunities for Pakistan. He added that Vietnam is one of the world’s largest producers of plastic paper and has shown interest in establishing production facilities in Pakistan.

Trump said the U.S. will impose a 20% tariff on Vietnamese exports to the U.S. Goods transshipped through Vietnam will get 40%.

Vietnam is moving swiftly to diversify its export markets and reduce economic dependence on the US after the US-Vietnam trade agreement announced on July 4, 2025, imposed steep new tariffs.