President Donald Trump announced on his social media platform that the U.S. has reached a trade deal with Vietnam.

In a subsequent post following the announcement, the president stated that after speaking with the Highly Respected General Secretary of the Communist Party of Vietnam, Tô Lâm, the terms are that Vietnam will shoulder a 20% tariff on all U.S. exports and a 40% tariff on all transshipments. 

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. 

Vietnam’s state-run news outlet, Việt Nam News, reported that General Secretary Tô Lâm and Trump spoke on the phone Wednesday to patch up the terms of the deal.

The country was under the threat of a potential tariff increase to 46% by July 9.

The Department of International Cooperation under Vietnam’s Ministry of Agriculture and Environment, voiced his concerns over the U.S. administration’s decision and continued to strengthen its ties with the country in the face of the looming tariff. 

Less than a month ago, 50 representatives from Vietnamese agricultural businesses and associations traveled to Iowa and, alongside U.S. companies, signed five memoranda of understanding (MOUs) to import $2 billion in agricultural goods from the U.S.