'Zero Tariff On US Goods': Donald Trump Announces Landmark Trade Deal With Vietnam

US President Donald Trump has announced a landmark trade deal with Vietnam, which would allow the import of American goods in the Southeast Asian economy at zero tariffs.

In return, the US will be imposing 20% tariff on Vietnamese goods entering into its market, and 40% tariff on transshipments, Trump said in a post on Truth Social.

"It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries (sic)," he said.

The terms are that "Vietnam will pay the United States a 20% tariff on any and all goods sent into our territory, and a 40% tariff on any transshipping", he added.

In return, Vietnam will give the United States of America "total access" to their markets for trade.

"...we will be able to sell our product into Vietnam at zero Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam," he added.

Vietnam was among the countries hit with the highest import duties by the US in early April, when Trump rolled out his so-called reciprocal levies. The country was initially slapped with a 46% duty, which was later lowered to 10% as the two sides entered into negotiations to hammer out a bilateral trade deal.

The deal makes Vietnam the third country to have announced a trade pact with the US, following agreements with the UK and China announced by the Trump administration. A number of US' trading partners are racing to cut agreements with the country ahead of a July 9 deadline. 

Footwear and apparel stocks jumped after Trump announced the Vietnam trade deal, as the Southeast Asian nation serves as a crucial production hub for brands like Nike Inc., Gap Inc. and Lululemon Athletica Inc. Shares were soared over 4%, while Lululemon jumped nearly 3%.