Trump’s deal with Vietnam raised hopes for growth in US agricultural exports

President Trump announced that he had reached an agreement with Vietnam on a new trade deal that would reduce the Asian country’s tariff on exports to the United States.

According to the BBC, the tariff for Vietnam will be 20%, which is significantly lower than the 46% announced by Trump during his “American Liberation Day” presentation on April 2. If Vietnam is an intermediate link on the export route, the rate will increase to 40%, since about a third of the products that the country supplies to the United States are actually supplied from China. Instead, American goods will enter Vietnam on a free market basis – that is, without any tariffs at all.

Vietnam has promised to purchase 50 Boeing aircraft and purchase US agricultural products worth $ 2.9 billion. Recall that the United States exports $ 170-190 billion in agricultural and related products every year.

It is worth noting that in the MY 2024/25, Vietnam purchased only 3% of wheat and corn exported from the US and 2% of soybeans, although the volume of soybean meal purchased amounted to almost 5.7% of exports.

Against the backdrop of uncertainty surrounding exports to China, which promised to limit purchases of American soybeans and corn after Trump imposed high tariffs, the agreement with Vietnam creates additional opportunities to diversify sales markets and partially offset losses from a potential reduction in supplies to China.

Tags: USA, Vietnam