China has sharply criticized the new trade agreement between the United States and Vietnam, accusing President Donald Trump of using tariff negotiations with third countries to undermine Beijing’s export dominance.
In a statement on Thursday, July 3, China’s Ministry of Commerce said it was “conducting an assessment” of the deal and warned against any arrangements that harm its interests.
“We firmly oppose any party striking a deal at the expense of China’s interests,” the ministry stated.
“If such a situation arises, China will take resolute countermeasures to safeguard its legitimate rights and interests.”
The response comes after Trump announced on Wednesday that the U.S. would impose a lower-than-expected 20% tariff on many Vietnamese exports.
The move is seen as an attempt to ease trade tensions with Vietnam, America’s tenth-largest trading partner, just days before Washington is set to raise tariffs on most other imports.
“It is my great honor to announce that I have just made a trade deal with the Socialist Republic of Vietnam. It will be a great deal of cooperation between our two countries,” Trump said on Truth Social following a call with Vietnam’s General Secretary of the Communist Party, To Lam.
China Slams Trump’s Trade Deal with Vietnam
Under the agreement, Vietnamese goods will face a 20% tariff, while goods transshipped from third countries through Vietnam will be hit with a steeper 40% levy.
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U.S. Commerce Secretary Howard Lutnick, in a post on X Wednesday, said the trade deal with Vietnam is a massive win for America’s businesses, manufacturers, and farmers.
He added that the “transshipping” tariff means “if another country sells their content through products exported by Vietnam to us, they’ll be hit with a 40% tariff.”
In return, Trump said that Vietnam will do something “they have never done before”—give the United States of America total access to its markets for trade.
“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,” Trump added.
“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,” Trump said.
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The deal is the second in recent months viewed as targeting China.
In May, the U.S. and the U.K. signed an agreement that included strict security requirements for steel and pharmaceuticals, widely interpreted as an effort to reduce Chinese involvement in British supply chains.
For months, President Trump and his administration have claimed that countries are lining up to make trade deals with the United States.
Scores of nations are racing to finalize agreements before the July 9 deadline, when Trump’s suspended “reciprocal” tariffs are set to take effect.
However, in the lead-up to July 9 when the 90-day pause on those tariffs ends and levies as high as 50% could be imposed, there has been little progress.
Restoring such historic tariff rates could disrupt financial markets and upend business plans.
Tariffs on Vietnamese goods shipped to the U.S. were set to rise to a minimum of 46% if the rates Trump announced in April were implemented, placing Vietnam among the countries facing the highest proposed increases.
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