The Trump administration announced in a Truth Social post today that a tariff agreement with Vietnam had been reached regarding the International Emergency Economic Powers Act (IEEPA) reciprocal tariffs. Under the terms of the yet to be disclosed agreement, goods from Vietnam will have a 20% tariff (down from 46%), while transshipments from Vietnam will be subject to a 40% tariff. (There is no definition of what constitutes a “transshipment” but it may apply to any good that is exported from or subject to further processing in Vietnam that does not amount to a “substantial transformation.”)
Exports to Vietnam from the U.S. have been said to have a zero tariff. The effective date for these tariffs has not been announced; however, the 90-day suspension period for Annex 1 countries with individual rates expires on July 9, 2025. Unless otherwise modified, the increased rates will automatically apply to the countries identified in Annex I on July 9th, even without a further executive order.
The legality of the IEEPA reciprocal tariffs remains in question. The IEEPA reciprocal tariffs, which were the subject of a U.S. Court of International Trade (CIT) ruling declaring them unlawful, remain subject to judicial review by the United States Court of Appeals for the Federal Circuit. Arguments are expected to be heard before the court on July 31, 2025.
For additional information on this or other Customs matters, contact George Tuttle, III at geo@tuttlelaw.com or 415-986-8780.
The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence and may not be considered as such.
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