Vietnam becomes 2nd country to make trade deal with U.S. before July 9 deadline

Vietnam has become the second country to seal a TARIFF deal with the U.S. ahead of next week's deadline.

Our Kim Do-yeon reports.

The U.S. has announced its second major tariff deal since U.S. President Donald Trump announced an increase on tariffs for imported goods on April 2nd.

Trump took to Truth Social on Wednesday, where he called the agreement with Vietnam a "great deal."

According to his post, Vietnam will pay a 20% tariff on all goods shipped to the U.S., and a 40% tariff on transshipped products, which are goods Vietnam imports from China and then re-exports to America to dodge existing tariffs.

He also wrote that in return, Vietnam will grant the U.S. "TOTAL ACCESS" to its markets, eliminating tariffs on American goods.

Trump noted that SUVs have a good chance of success in the Vietnamese market.

Deputy Treasury Secretary Michael Faulkender on CNBC described the deal as a huge win, adding that more could be announced before the July 9th deadline.

He noted that for many countries, the sticking points aren't tariff levels but non-tariff barriers, which often block American products. If those come down, he said, it "reshapes the calculus for U.S. trade."

Faulkender also warned that there will be no extension beyond July 9th and that he anticipates an announcement on the tariffs imposed on countries that have not or do not strike a deal.

This comes as South Korea has yet to strike an agreement.

Despite Trade Minister Yeo Han-koo's trip to Washington last week, the Wall Street Journal reports a deal isn't close.

Seoul is seeking relief on U.S. tariffs targeting autos, steel, and aluminum, while U.S. negotiators have concerns over Korea's regulations on digital giants like Google and Coupang.

Kim Do-yeon, Arirang News.