Vietnam will charge no tariffs on US products under the agreement, Trump said in a social media post.
Earlier products exported from Vietnam to the United States had faced a 46-per cent tariff rate, which was set to go into effect next week.
The 20-per cent tariff the United States will impose is double the current minimum tariff rate it is charging on goods from Vietnam and almost every other country.
Terming the agreement a ‘Great Deal of Cooperation’, Trump said the United States will also impose a steeper tariff of 40 per cent on goods that pass through Vietnam via ‘trans-shipping’.
"Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” Trump wrote.
"In other words, they will 'OPEN THEIR MARKET TO THE UNITED STATES,' meaning that we will be able to sell our product into Vietnam at ZERO Tariff," he added.
Trump's senior counsellor on trade and manufacturing Peter Navarro has said that a third of all Vietnamese exports to the United States were actually Chinese products.
A state-run news outlet in Vietnam reported that General Secretary To Lam and Trump had a telephonic conversation yesterday to patch up the terms of the deal.
ALCHEMPro News Desk (DS)
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