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Workers from the Thai son SP Co. Around Factory seeks to produce products for global customers, Thu Duc, Ho Chi Minh, Vietnam, 21 June 2025.
Daniel Price | Anadolu | Gets the image
Global attention was paid to Vietnam on Thursday, after US President Donald Trump announced a trade agreement with Hanoi a few days before Washington’s mutual tariffs returned to full force.
Under agreementThe US will apply 20% of Vietnamese import duties – sharply below 46% of the rate that Trump imposed in early April. The United States is imported in Vietnam, meanwhile.
Trump also stated that Vietnam agreed to 40% of any products that originally came from another country but were sent to Vietnam for final shipment in China justify Repeatedly relied on this practice known as transchep to avoid trading barriers.
Vietnam is one of the few countries that concluded a trading deal with the White House, while the clock abandoned Trump’s 90-day temporary address. In many countries, it is interesting how to form the future of their trade relations with the world’s largest economy.
“What we learned from the Vietnam transaction is, if anything, the tariffs are going from here, not down,” said Sebastian Radler on Thursday, head of the European Bofa Strategy Department.
Ahead of more new market deals?
The transaction can cause concern in other countries developing in the market, such as Vietnam, economists and Citi strategists, said on Thursday’s note.
“In the balance we believe that EM ASIA has more than expecting a profit when this transaction reflects what is fast,” they said.
While development removes uncertainty and believes that other agreements may appear in the coming days, 20% tariff rate higher than the expected 10% collection, Citi experts say. They add that a separate 40% rate on trans -baked goods suggests that other countries may also agree to such a duty.
“Thailand, and then Malaysia, may be more subjected to other peers in Asia (except Vietnam). A separate and more darkest tariff on the transpressed product was the least expected market,” the record said.
“In addition, it can be spilled from other exporters who have created factories in Vietnam in recent years,” for example, Korea, she added.
What can mean transaction for Europe
While the Vietnam-US transaction suggests that for other Asian countries, it is probably not necessarily ahead that the same is the same to the European Union, CNBC reported Venkateswaran, Senior economist ASEAN at OCBC Bank.
“Vietnam authorities were understood about their intention to agree with the US, even before mutual ads were made in April,” she said via email, adding that the same thing was for other regional economies, such as Indonesia and Malaysia.
“Compared to these economies, the case with () was not always smooth swimming, and the United States was more public in its EU criticism at different times in the last few months,” Venkatezvayan said.
Trade negotiations between the EU and the US were difficult and slow for development, with sour Saying CNBC that naked bones of “political” deals with the meager original details can be the best EU hope at the moment. Analysts and economists also expressed uncertainty about the likelihood of a trade agreement, given key points such as large technological regulation, taxation and widely inappropriate worldviews.
Trump called for tariffs up to 50% The EU, while the block was threatened with a wide counter -stars, which were also suspended until next week.
