President Donald Trump’s bold trade strategy is already yielding results. In a recent call with Tô Lâm, General Secretary of the Communist Party of Vietnam, Trump announced that Vietnam is prepared to eliminate its tariffs on American goods entirely. The phone call, described by the White House as “productive,” is being seen as a major breakthrough—and a clear validation of Trump’s America First economic approach.
The potential deal comes just days after the U.S. slapped a 46% tariff on Vietnamese imports as part of the administration’s broader “Liberation Day” initiative to end unfair trade practices and bring manufacturing back to the United States. Rather than retaliate like some nations, Vietnam appears to be taking a different path—cooperation.
According to administration officials, Vietnam expressed interest in reaching a new, mutually beneficial trade agreement that could see its tariffs on U.S. products drop all the way to zero. That move would represent a dramatic reset in bilateral trade and could open up one of Southeast Asia’s fastest-growing markets to American companies and farmers.
Vietnam has become a manufacturing powerhouse in recent years, serving as a key hub for global brands like Nike, Adidas, The North Face, and Patagonia. Roughly 30% of Vietnam’s entire GDP is tied to exports to the U.S., giving Washington significant leverage in any trade negotiation. With the new tariffs putting pressure on that lifeline, Hanoi appears eager to find common ground.
Markets responded quickly to the news. Nike shares jumped 3% following the announcement, as investors welcomed the possibility of reduced trade friction and improved market access. The message was clear: Trump’s strategy is moving the needle.
This stands in stark contrast to China’s combative approach. Beijing responded to U.S. tariffs with a 34% retaliatory tax on all American imports and a series of threats targeting U.S. businesses. But Vietnam’s willingness to deescalate proves that not every nation wants a trade war—and many would rather negotiate than lose access to the world’s most powerful consumer market.
While the details of a final agreement with Vietnam are still being ironed out, the early signals are promising. If successful, the deal could serve as a blueprint for future trade talks with other nations that rely heavily on U.S. markets but have long taken advantage of outdated, one-sided trade agreements.
President Trump has repeatedly emphasized that the goal of his tariff policy is not to isolate the United States but to force fair treatment, level the playing field, and reignite domestic production. The call with Vietnam proves the strategy is working. Countries are listening. They’re coming to the table.
As Trump continues to reshape the global trade landscape, Vietnam’s about-face may be the first of many. The era of endless concessions and empty promises is over. America is back at the head of the table—and this time, it’s negotiating from a position of strength.