Vietnam secured a preliminary trade deal with the US, avoiding a 46% tariff but facing a 20% levy on many goods. However, a 40% tariff on transshipments—goods passing through Vietnam to avoid US tariffs on Chinese products—raises concerns. Businesses worry about the broad definition of "transshipment", potentially impacting numerous goods unfairly. The deal's focus on countering China's influence has prompted a strong response from Beijing, highlighting the complex geopolitical implications and potential economic repercussions for Vietnam, which balances relationships with both the US and China.

Prepared by Rachel Morgan and reviewed by editorial team.