The trade pact announced between the United States and Vietnam on July 2 has stirred confusion and President Donald Trump claimed the deal was a success, declaring that the US had reached a trade agreement with Vietnam. However, officials later revealed that no formal trade deal exists, what has actually been signed is a framework agreement—a commitment to negotiate a detailed trade agreement in the future. Both sides acknowledged the discussions and set terms, but a legally binding deal remains pending.
What Trump Announced?
On July 2, President Trump said the US had finalized a trade deal with Vietnam. According to him, the agreement would lead to lower tariffs on Vietnamese goods and greater access for American exports. The announcement triggered immediate attention, especially after Trump had previously imposed a steep 46% tariff on Vietnam.
Bessent’s Uncertainty
However, US Treasury Secretary Scott Bessent seemed unclear about the deal’s current status. In an interview with CNBC, when asked whether Vietnam had actually signed the deal, Bessent responded, “I assume so.” He added that Ambassador Jamieson Greer, the US Trade Representative, handles such documentation. His response left many questioning the authenticity and clarity of the deal.
What Vietnam Has Actually Signed
Vietnam has not officially signed a trade agreement. Instead, its government confirmed a “framework for a fair and balanced reciprocal trade agreement.” The statement came after a phone call between President Trump and Vietnam’s President To Lam. The agreement promises preferential market access for US products and a reduction in tariffs on Vietnamese goods—but only after further negotiations.
Vietnamese Finance Minister Nguyen Van Thang called the framework “an important negotiation result.” He added that it brings hope and expectations for businesses on both sides, but however, the lack of a formal agreement suggests more work remains.
What Happens Next?
The US and Vietnam now build on this framework while the initial steps suggest progress, and the final trade deal will require further negotiations, ratification, and transparency but for now, what exists is not a trade deal but a pathway to one.
