On July 2, US President Trump announced that the United States had reached a trade agreement with Vietnam. Under the terms of the agreement, all Vietnamese goods shipped to US territory will be subject to a 20% tariff, while US goods will enter the Vietnamese market tariff-free. Experts believe that this demonstrates Vietnam’s pragmatic stance in economic and geopolitical cooperation, offering insights for Taiwan.
Trump also stated, “Under the terms of the agreement, a 40% tariff will be imposed on any goods transshipped (through Vietnam) to the United States.”
Political commentator Wang Hao wrote on Facebook that in the latest US-Vietnam trade agreement, the US will impose a 20% tariff on Vietnamese goods and a 40% tariff on goods labeled as “transshipments.” In exchange, Vietnam will open its market to the US unconditionally, allowing American goods to enter tariff-free. This highly “asymmetrical” agreement showcases Vietnam’s willingness to make strategic concessions to deepen economic, trade, and geopolitical cooperation with the US.
Wang Hao emphasized that this serves as a clear lesson for Taiwan: In the face of great powers, winning is not the focal point; strategic judgment and confidence in national interests are key. Vietnam’s readiness to endure short-term losses indicates a strategic understanding of long-term economic restructuring and the geopolitical value of aligning with the US.
He pointed out that unlike Vietnam, Taiwan has faced criticism and hesitation in signing bilateral trade agreements with the US in the past, often accused of “selling out sovereignty” or “surrendering to the US” by certain opposition forces. This has hindered the government’s ability to proactively seize opportunities.
For Taiwan to position itself effectively in the supply chain restructuring amid the US-China rivalry, it must move beyond a zero-sum mentality of “not yielding anything” and crack down on Chinese products entering through Taiwan as transshipment points. Establishing flexibility in strategic negotiations is crucial. Not every instance of openness entails “national humiliation”; sometimes, it involves rational exchanges for survival space. Vietnam’s choices should prompt deep reflection in Taiwanese society.
As the US President Trump announced a trade agreement with Vietnam, attention now turns to Taiwan’s ongoing negotiations with the US on equal tariffs. Government spokesperson Li Hui-zhi stated today that discussions between Taiwan and the US regarding tariff negotiations are ongoing, and details will be shared with the public at an appropriate time.
Taiwan’s Premier Su Yen-tai highlighted that ongoing negotiations are crucial amidst the US tariff policy, with discussions reaching a critical phase worldwide that profoundly impacts global economic and trade order. He thanked Vice Premier Jenny Cheng and Political Deputy Minister Jeanie Yang for their numerous video and face-to-face negotiations with the US over the past two months, carefully considering the implications for domestic industries.
Since US President Trump announced the new tariff policy early on April 3, Taiwan’s Executive Yuan swiftly proposed a support package of NT$88 billion (approximately $2.968 billion USD) within 48 hours, leading the world in this initiative. Subsequently, in response to international and national circumstances, they further introduced the “Special Act to Strengthen Economic, Social, and National Security Resilience in Response to International Situations,” which has been under review at the Legislative Yuan for over two months.
According to reports from the Central News Agency, Riley Walters, an international economics expert at the Hudson Institute, commented on the US-Vietnam trade agreement, calling it “quite interesting.” He explained that the widening US trade deficit with Vietnam is partly due to some investment redirected from China to Vietnam after the first US-China trade war, making Vietnam one of the countries with a significant trade deficit with the US.
Regarding the implications of the US-Vietnam agreement for Taiwan, Walters remarked that it’s hard to imagine Taiwan being subject to a 20% tax rate. Though the US also faces a substantial trade deficit with Taiwan, the widening gap is primarily driven by an increase in exports of artificial intelligence (AI) related products, rather than new investments redirected from China.
According to data from the Executive Yuan of the Republic of China website, in 2024, the US had a trade deficit of $73.92 billion with Taiwan, making Taiwan the sixth-largest source of trade deficits for the US.