United States and Vietnam reach a deal on tariffs

New Zealand exporters of timber that is used to manufacture furniture and other wood products in Vietnam for export to the United States will be relieved to know that an agreement on tariffs has been reached between those two countries.

Under the agreement, the tariff imposed by the US on Vietnamese goods will be 20%, still a tax but significantly less than the 46% proposed by President Trump on 2 April 2025, “Liberation Day”.  A 40% duty will apply on goods that are shipped through Vietnam from other countries; essentially a provision to apply to goods sourced from China but shipped out through Vietnam. 

The 20% duty is still higher than the duty that has applied during the 90 day pause since 2 April, but nevertheless it provides some certainty, at least for the immediate future.

Greater detail has yet to be revealed but this agreement is seen to be a precursor to a more permanent arrangement that is still being negotiated.

Wait for more news on this.