Vietnam-U.S. Trade Deal Enters Final Stage as Tô Lâm Signs USD 37.2 Billion in Contracts

On February 19, General Secretary Tô Lâm met U.S. Trade Representative Jamieson Greer in Washington.
Both sides confirmed that negotiations on a Vietnam-U.S. reciprocal trade agreement have entered the "decisive phase," with a final text expected within weeks.

Tô Lâm's stated reason for visiting Washington was the inaugural session of Trump's "Gaza Peace Commission."
But the real headliner of the trip was trade.

From 46 Percent to 20 Percent in Under a Year

The story starts in April 2025.

Trump announced "Liberation Day" tariffs, and Vietnam was hit with a 46 percent reciprocal rate — among the highest in the world.
The formula was blunt: take America's trade deficit with a country, divide by total imports from that country, divide by two.
Vietnam's deficit-to-import ratio exceeded 90 percent, producing the 46 percent figure.
The Trump administration's logic: a deficit that large must mean Vietnam has too many barriers against American goods.
White House adviser Peter Navarro went so far as to call Vietnam "the poster child for non-tariff cheating."
In 2024, the U.S. goods trade deficit with Vietnam was USD 123.5 billion — America's third-largest bilateral deficit.

The 46 percent tariff hadn't even taken effect when global stock markets crashed.
Trump quickly announced a 90-day pause, with a uniform 10 percent rate in the interim.

Those 90 days were Vietnam's window.
In July 2025, after a call between Tô Lâm and Trump, the two sides announced a preliminary deal: Vietnam's tariff rate dropped from 46 to 20 percent, transshipped goods would face 40 percent, and Vietnam would grant near-zero tariffs on American products.

In October, the two countries issued a joint statement confirming the framework.
Five rounds of negotiations followed.
By February 2026, they reached the home stretch.

What Vietnam Agreed To

Based on the October framework statement and disclosures from the U.S. Trade Representative's office, Vietnam's concessions cover a wide range:

Accepting imports of U.S. vehicles that meet American safety and emissions standards — effectively opening Vietnam's market to American pickup trucks and large SUVs.
Allowing imports of remanufactured goods.
Accelerating approval processes for U.S. medical devices and pharmaceuticals.
Implementing the World Intellectual Property Organization's internet treaty obligations.
On digital trade: no tariffs on electronic transmissions, and cross-border data transfers won't require permits.

In short, Vietnam traded market access for lower tariffs.
Whether the math works out depends on how much of its export advantage Vietnam can preserve.

The USD 37.2 Billion "Gift Bag"

Tô Lâm didn't travel to Washington alone.
A large delegation of Vietnamese businesses came along.
During the visit, Vietnamese and American companies signed contracts and memoranda of understanding worth a combined USD 37.2 billion.

Aircraft alone accounted for nearly 100 planes: Vietnam Airlines signed for 50 Boeing 737-8s (USD 8.1 billion), Sun PhuQuoc Airways signed for 40 Boeing 787-9s (USD 22.5 billion), and Vietjet signed a USD 6.3 billion engine and maintenance deal with Pratt & Whitney.

On agriculture, Vietnamese companies signed 20 memoranda of understanding to purchase American farm products, worth an estimated USD 2.9 billion.
In energy, Binh Son Refining (BSR) and U.S. firms including Chevron and ADM signed crude oil and ethanol supply agreements.

The political message was unmistakable: Vietnam is buying American.
Every contract was designed to show Washington that Vietnam is willing to close the trade gap with real purchases.

The Scale of the Deficit

Trump used the deficit ratio to calculate tariff rates.
So how big is Vietnam's deficit, exactly?

In 2024, the U.S. goods trade deficit with Vietnam was USD 123.5 billion.
In the first ten months of 2025, Vietnamese exports to the U.S. hit USD 126 billion — up 28 percent year-on-year, with electronics components surging nearly 80 percent.
For the full year of 2025, the deficit expanded to USD 178.2 billion.

Vietnam's top exports to the U.S. — electronics, textiles, footwear — are largely produced by multinationals with Vietnamese factories.
Samsung, Intel, and Nike all manufacture in Vietnam and ship to America.
Their output counts toward Vietnam's surplus.

The Trump administration is also focused on transshipment.
Some Chinese goods are routed through Vietnam to the U.S. to dodge tariffs — which is why transshipped goods face an even higher 40 percent rate.

What's Still on the Table

Both sides say the deal is nearly done, but several thorny issues remain.

Vietnam has long pushed the U.S. to recognize it as a "market economy."
Washington still classifies Vietnam as a non-market economy, which puts it at a disadvantage in anti-dumping investigations.
Tô Lâm raised the request again during this visit; the U.S. side gave no public response.

State-owned enterprise reform is another unresolved point.
The U.S. wants Vietnam to commit to reducing market distortions caused by SOEs — a demand that touches the core of Vietnam's economic system and won't be resolved quickly.

Then there's high-tech export controls.
Vietnam wants the U.S. to ease restrictions on certain advanced technology exports, a particularly sensitive topic in semiconductors and AI.

What It Means for Foreign Businesses in Vietnam

Once the trade deal is formally signed, companies manufacturing in Vietnam for the U.S. market will feel the impact directly.

A 20 percent tariff is much better than 46 percent, but still significantly higher than the near-zero rates of the past.
Higher production costs will show up in pricing, and some orders may shift to other countries.

Transshipment is another risk.
If a company is found to be routing goods through Vietnam, the 40 percent rate is enough to wipe out margins.
The Vietnamese government has already stepped up origin-of-goods inspections.
Businesses need to make sure their supply chains are fully compliant.

The good news: once the agreement is signed, the rules become clear.
Compared to the uncertainty of the past several months, having a defined framework is actually better for long-term planning.