Episode 281 of the China Manufacturing Decoded podcast* explores the recently announced trade agreement between the U.S. and Vietnam, what it includes, and the ripple effects for global supply chains, especially for American importers seeking to pivot from China to Vietnam.
On July 2, 2025, the U.S. and Vietnam announced a new trade framework. While it avoids the most extreme tariffs previously floated (up to 46%), it still introduces major changes:
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A 20% blanket tariff on most Vietnamese exports to the U.S.
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A 40% tariff on goods deemed to be “transshipped”—those originating elsewhere (often China) but routed through Vietnam
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Zero tariffs on U.S. exports to Vietnam, including American-made SUVs and industrial products
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New Vietnamese commitments on intellectual property, labor standards, and purchasing more U.S. goods
It’s not a formal treaty…yet. But it sets the tone for enforcement and future negotiations across Asia.
*Hosted by Adrian from the Sofeast Group and joined by our CEO, Renaud Anjoran.
Listen here
Listen to the episode or watch on YouTube
Show sections
- 00:00 – Intro: What’s in the New US–Vietnam Trade Deal?
- 00:48 – Liberation Day Tariffs and the Road to Negotiation
- 03:04 – What’s in the Deal: 20%, 40%, and Zero Tariffs
- 05:09 – Understanding Transshipment and Its Penalties
- 08:09 – Can Enforcement Work? Customs and Certification Challenges
- 10:14 – Regional Repercussions: Will Other Countries Face Pressure?
- 13:12 – What Importers Should Do Now to Stay Compliant
- 15:03 – U.S. Strategy: Vietnam as a Geopolitical Ally
- 18:18 – Could This Model Expand to India and ASEAN?
- 22:46 – Final Takeaways and Next Steps for Importers
What importers need to do next
If you’re sourcing from Vietnam, this episode is a must-listen. Here are some of the hosts’ top tips:
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Double-check your product origin: U.S. Customs will expect proof of transformation, not just an invoice from Vietnam.
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Plan for enforcement: The 40% tariff will hit hard if the origin can’t be substantiated.
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Watch for policy spillover: Countries like Malaysia and Thailand may face similar pressure.
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Don’t assume Vietnam = low risk: The U.S. now considers Vietnam’s trade balance and supply chain role strategically.
Related content
- Reuters – Trump: 20% tariff on Vietnam exports
- AP – Tariff loopholes and enforcement challenges
- Washington Post – Tariffs and Trump’s Asia pivot
- Bloomberg – Trump Announces Vietnam Trade Deal With 20% Import Tariff (Video)
- Sofeast – Get help with your Asia manufacturing
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