President Donald Trump holds a signed executive order on tariffs, in the Rose Garden at the White House in Washington, D.C., April 2, 2025.
President Donald Trump announced on Wednesday a new trade agreement with Vietnam, imposing a 20% tariff on Vietnamese imports to the United States. In a Truth Social post, Trump stated the deal grants the U.S. tariff-free access to Vietnam’s markets. Additionally, Vietnam agreed to a 40% tariff on goods transshipped through Vietnam from other countries, such as China, to the U.S. This practice, known as transshipping, is often used to evade trade barriers.
It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. 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. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!
Which products would fall under the higher tariff rate is unclear. It could refer to goods imported to the United States from Vietnam that actually originated in China. But it could also apply to Vietnamese products that use a certain amount of Chinese parts. The deal could include a lower tariff on goods that are made in Vietnam with fewer Chinese parts and materials, and a higher tariff rate for Vietnamese goods that contain many Chinese components.
Mr. Trump characterized the deal as Vietnam paying the tariffs even though they will be paid by U.S. importers.
The president added that as part of the agreement, Vietnam will open its market to American businesses, allowing them to export to Vietnam without any tariffs.
A statement from the Vietnamese government about the phone call said that the two countries had reached a “framework for a fair and balanced reciprocal trade agreement,” one that would give the United States “preferential market access” for American goods.
MacDailyNews Take: The 40% tariff on transshipped goods incentivizes Apple to ensure its Vietnam-based production is genuinely local and not a conduit for Chinese goods. This aligns with Apple’s ongoing strategy to diversify its supply chain away from China, where it currently faces a 145% cumulative tariff rate. Apple has already significantly increased production in Vietnam for iPads, Apple Watches, and AirPods, with Vietnam becoming a key hub for these products. The deal could push Apple to further invest in Vietnam’s manufacturing ecosystem, potentially reducing its over-reliance on China over time.
Of course, the 20% tariff on Vietnamese imports into the U.S. directly impacts Apple’s products manufactured in Vietnam, such as iPads, Apple Watches, AirPods, and some Mac products.
Apple would either have to absorb the 20% tariff on Vietnam-made goods, which would compress profit margins, or pass the costs to consumers. We expect Apple to mostly, if not totally, absorb the 20% tariff on Vietnam-made goods into the U.S., while, as always, working its supply chain to minimize the impact of U.S. import tariffs.
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