On Wednesday, July 2, President Trump said that the U.S. had a deal with Vietnam. He said that the U.S. will put a 20% tariff on a meaningful number of Vietnamese exports.

Previously, Vietnam faced a 46% tariff, which was announced on Liberation Day (April 2). However, goods that are shipped from another country and through Vietnam would face a 40% tariff.

During the Biden Administration, China imported goods to Vietnam to avoid trade restrictions. Chinese firms also relocated their firms or moved their staff to Vietnam. Trump's updated tariffs would prevent that from happening.

Unfortunately, the White House did not give many details. For example, it did not specify which goods are subject to the 20% tariffs. The U.S. government also failed to detail how it would identify goods that China made and then shipped to Vietnam so that the goods would have a“Made in Vietnam” label.

Investors should watch VanEck Vietnam ETF (VNM). The equity is up by nearly 20% in 2025. It beat the S&P 500's (IVV) 5.86% return.

Watch the performance of the U.S.'s other trading partners. Mexico's ETF, the iShares MSCI Mexico ETF (EWW), is up by 31.55%. The iShares MSCI Canada ETF (EWC) is up by nearly 15%.

Watch India next (INDA). Down by 0.32% in the year but up by 5.62%, India seeks a tariff reduction before July 9.

MENAFN03072025000212011056ID1109758384