 Announces Tariff AgreementWith Vietnam July 2, 2025 |
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American Shipper |
Post Date |
07/03/2025 |
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here is no definition ofwhat constitutes a ?ransshipment?but it may apply to any good that isexported from or subject to further processing in Vietnam that does not amountto a ?ubstantial transformation.?
The Trump administrationannounced in a Truth Social post today that a tariff agreement with Vietnam hadbeen reached regarding the International Emergency Economic Powers Act (IEEPA)reciprocal tariffs. Under the terms of the yet to be disclosed agreement, goodsfrom Vietnam will have a 20% tariff (down from 46%), while transshipments fromVietnam will be subject to a 40% tariff. (There is no definition of whatconstitutes a ?ransshipment?but it may apply to any good that is exportedfrom or subject to further processing in Vietnam that does not amount to a?ubstantial transformation.?
Exports to Vietnam fromthe U.S. have been said to have a zero tariff. The effective date for thesetariffs has not been announced; however, the 90-day suspension period for Annex1 countries with individual rates expires on July 9, 2025. Unless otherwisemodified, the increased rates will automatically apply to the countriesidentified in Annex I on July 9th, even without a further utive order.
The legality of the IEEPAreciprocal tariffs remains in question. The IEEPA reciprocal tariffs, whichwere the subject of a U.S. Court of International Trade (CIT) ruling declaringthem unlawful, remain subject to judicial review by the United States Court ofAppeals for the Federal Circuit. Arguments are expected to be heard before thecourt on July 31, 2025.
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