The United States and Vietnam will finalize a trade agreement in the coming weeks that will see reciprocal tariffs set at 0%-20%, the White House said on Sunday.
The two countries have agreed to a framework for the agreement on "reciprocal, fair and balanced" trade between the two nations, the countries said in a joint statement released by the White House.
US President Donald Trump in July announced that the United States would place a 20% tariff on many Vietnamese products, as well as a 40% levy on trans-shipments through Vietnam from third countries.
In the new deal, the United States will maintain its reciprocal tariffs at 20% on Vietnamese goods, but will identify products where the levy can be reduced to zero.
The agreement "will provide both countries' exporters unprecedented access to each other's markets", the Sunday statement said.
Last year, Vietnam, had a trade surplus of $123 billion with the United States, its largest export market.
"In the coming weeks, the United States and Vietnam will work to finalize the Agreement on Reciprocal, Fair, and Balanced Trade, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force," the statement said.
The US and Vietnam will also work to address both countries' interests when it comes to non-tariff barriers, it said.
Vietnam has agreed to accept vehicles built to US motor vehicle safety and emissions standards, address the issue of import licenses for US medical devices, and streamline regulatory requirements and approvals for US pharmaceutical products.
It will also fully implement Vietnam's obligations under certain international intellectual property treaties, it added.
"The United States and Vietnam are committed to strengthening cooperation towards our shared goals to enhance supply chain resilience, including addressing duty evasion and cooperating on export controls," it said.
