On 26–27 October 2025, during the 47th ASEAN Summit in Kuala Lumpur, US President Donald Trump and Vietnamese Prime Minister Phạm Minh Chính issued a joint statement introducing a framework for an “Agreement on Reciprocal, Fair and Balanced Trade.” This framework builds on the existing Comprehensive Strategic Partnership and aims to strengthen bilateral trade and investment across industrial, agricultural, and services sectors

Key Highlights

• The US will maintain a 20% tariff on most Vietnamese-origin goods under EO 14257 but will identify selected products (per Annex III of EO 14346) for a 0 % tariff rate.
• Vietnam will provide preferential market access for nearly all US industrial and agricultural exports.
• Both sides will address non-tariff barriers, including Vietnam’s acceptance of US vehicle safety/emissions standards and streamlined approvals for medical devices and pharmaceuticals.
• Collaboration will extend to digital trade, services, investment, IP protection, supply-chain resilience, duty evasion, and export controls.

Implications for Business

• US businesses can expect improved market access in Vietnam.
• Vietnamese exporters face a 20% tariff baseline, with potential reductions for select goods.
• Heightened focus on supply-chain resilience and compliance signals increased regulatory scrutiny for cross-border trade.

KPMG Recommendations

• Review product portfolios to identify goods that may qualify for future 0% tariffs or be impacted by the 20% baseline.
• US exporters: Assess Vietnam’s import regimes, especially for agriculture, industrial goods, medical devices, and automobiles.
• Vietnamese exporters: Evaluate pricing and sourcing strategies considering tariff structures and potential reductions.
• While this is an initial framework, a full agreement is expected in the coming weeks. Businesses should stay agile and prepare for evolving compliance requirements and strategic trade opportunities.

KPMG’s tax, customs, and trade compliance teams are ready to assist with risk assessments, duty evasion controls, and export compliance strategies under the new framework.