The trade deal between the US and Vietnam imposes a 20% tariff on Vietnamese exports and a 40% tariff on goods transshipped from China. Current tariffs on Chinese goods are approximately 55%, expected to stay until at least August. The 40% tariff on transshipped goods indicates a likely minimum tariff level in any future agreements with China. A trade framework reached last month allows China to resume rare earth shipments in exchange for reduced US export restrictions, while Beijing tightens its controls on precursor chemicals for fentanyl to seek tariff relief.
The 40% tariff on transshipped goods suggests that even if tariffs on China are eventually reduced, they're unlikely to fall below that threshold.
The 40% figure in the Vietnam deal might reflect a broader conviction in the Trump administration about the appropriate tariff level on China.
As part of the deal, China agreed to resume shipments of rare earths - key inputs for wind turbines, electric vehicles and military hardware.
Beijing has tightened controls on two precursor chemicals used to make the drug - one of the few obvious avenues it has to win further tariff relief.
Collection
[
|
...
]