Viet Nam reaches a trade deal with the US
On July 7, 2025, US President Donald Trump issued an executive order extending the suspension of some of his most aggressive tariffs until August 1. The order came just days before the 90-day pause on Trump’s country-specific tariffs was set to expire. (A separate 90-day suspension of some tariffs on goods from China, announced on May 12, remains in force and is unaffected by the new order.)
Also on July 7, Trump posted on social media letters addressed to the leaders of 14 countries, detailing his intention to apply tariff rates ranging from 25% to 40% (see table below). The tariffs would apply as of August 1 to all goods imported into the US from the 14 targeted countries. In the letters, Trump signaled a willingness to negotiate, noting that the tariffs “may be modified, upward or downward, depending on our relationship with your Country.” On July 9, as reported by the BBC, Trump posted a similar letter to the leader of Brazil, Luiz Inácio Lula da Silva, vowing to impose a 50% tariff on Brazilian goods on August 1 and criticizing the prosecution of former Brazilian President Jair Bolsonaro. Lula replied by saying that Brazil would respond reciprocally to any increase in tariffs.
Separately, Trump announced on July 2 a trade deal with Viet Nam, under which the US will apply a 20% tariff on Vietnamese goods —substantially lower than the suspended 46% rate that was set to come into effect this week. According to Trump, a 40% tariff will apply to transshipments to the US from third countries via Viet Nam, and Viet Nam will apply zero tariffs on imports of US goods. According to reporting from Reuters, in a statement celebrating what it described as an agreement on a joint statement about a trade framework, the Vietnamese government did not confirm the specific tariff levels. At the time of this report, it was unclear when the terms of the US–Viet Nam deal would come into effect.
Remember to visit the INC’s regularly updated Tariffs Timeline to check on where things stand.
| New US tariffs announced on July 7 | |
| Country | Rate |
| Bangladesh | 35% |
| Bosnia and Herzegovina | 30% |
| Cambodia | 36% |
| Indonesia | 32% |
| Japan | 25% |
| Kazakhstan | 25% |
| Laos | 40% |
| Malaysia | 25% |
| Myanmar | 40% |
| Serbia | 35% |
| South Africa | 30% |
| South Korea | 25% |
| Thailand | 36% |
| Tunisia | 25% |
Source: Adapted from BBC News