Vietnam and US Nearing Trade Deal, Vietnamese Media Reports

Vietnam and the United States are nearing the finalization of their reciprocal trade and tariff agreement, Vietnamese media reported this week. Vietnamese President To Lam met with U.S. Trade Representative Ambassador Jamieson Greer in New York, where he is attending the U.N. General Assembly. According to Vietnamese state media, Greer hailed the "substantial progress" in the trade talks, adding that negotiators from both sides were "very close to reaching the final outcome." Lam expressed his desire "to work with President Donald Trump’s administration to continue advancing bilateral relations in a stable, substantive, effective, and sustainable manner." He stated that Vietnam has "made efforts to substantively promote cooperation and purchase goods from the U.S. in order to boost bilateral trade in a more balanced direction." Lam also "called on the U.S. to take a comprehensive approach to outstanding trade issues," including a number of investigations initiated under Section 301 of the U.S. Trade Act of 1974. Vietnam is currently the subject of several Section 301 investigations. In June, it was among 60 nations threatened with tariffs of 10-12.5 percent by the Office of the U.S. Trade Representative (USTR) for alleged failures to address forced labor. It also faces separate Section 301 probes into alleged excess manufacturing capacity and intellectual property rights violations. These investigations are seen as an attempt to revive President Trump’s protectionist trade policy, following the U.S. Supreme Court’s February decision striking down sweeping global tariffs imposed by his administration. In Vietnam's case, these investigations have slowed down trade negotiations that began shortly after a "liberation day" tariff announcement by President Trump in April 2025, which initially hit Vietnam with a 46 percent tariff. Although the two nations signed a framework for a trade agreement in October, lowering the tariff rate by 20 percent, a final agreement has yet to be reached despite months of negotiations. The talks have stalled over U.S. concerns regarding transshipment – the alleged routing of Chinese goods through Vietnam to evade U.S. tariffs – and market access for American companies. The Trump administration is also concerned about Vietnam's growing trade surplus with the United States, which continues to expand despite last year's tariffs. According to the USTR, the U.S. goods trade deficit with Vietnam rose to $178.2 billion in 2025, a 44.3 percent increase from 2024, making it the third-largest deficit after China and Mexico. The ongoing trade talks have been a source of persistent, albeit minor, friction in the U.S.-Vietnam relationship. A final reciprocal trade agreement would undoubtedly provide a positive boost for both sides, allowing them to capitalize on opportunities created by the establishment of a Comprehensive Strategic Partnership in 2023. In a statement issued today, the Vietnamese government argued that "a trade agreement would provide a stable and long-term framework for economic, trade and investment ties between the two countries."