Trump's Vietnam Trade Deal Stokes Concern in Asia

India had been seeking an exemption on reciprocal tariffs in its negotiations with US

- Bloomberg

Vietnam's trade deal with the US is a wake-up call for Asian governments grappling with the reality that higher tariffs are here to stay. US President Donald Trump announced a 20% tariff on imports from Vietnam, and a 40% rate for goods transshipped through the country—a move mostly targeted at curbing Vietnam's trade with China. In return, Vietnam is slashing import taxes on US goods to zero. Although the US duties are lower than the 46% the US president had threatened to impose on Vietnam, the concessions made by the Southeast Asian nation and the higher rate for goods re-routed through the country have raised concerns in Asian capitals.