The US and Vietnam reached a trade deal lowering tariffs on Vietnamese exports to 20 percent, but imposing a 40 percent levy on goods trans-shipped, seemingly targeting Chinese re-exports. China condemned the deal, vowing countermeasures if its interests are harmed. Many countries are negotiating deals with the US before July 9th, when higher tariffs resume. Analysts suggest this US strategy aims to curb China's influence, potentially escalating trade tensions further, despite a claimed tariff truce between the US and China. Enforcement of the trans-shipment levy remains unclear, posing challenges for both sides.

Prepared by Rachel Morgan and reviewed by editorial team.