As per the brand new commerce pact introduced by President Donald Trump, the US will impose a flat 20% tariff, moreover a 40% tariff on transshipped items from Vietnam.
Past a deviation from the earlier commitments beneath the 2000 US-Vietnam Bilateral Commerce Settlement (BTA), the place Vietnamese items have been topic to 2-10% tariffs, the brand new deal seeks to tax transshipped items, which differs from the foundations of origin on which tariffs or obligation concessions are based mostly.
“The phrases are that Vietnam can pay the USA a 20% tariff on any and all items despatched into our territory, and a 40% tariff on any transshipping,” Trump stated in a put up on X.
“India must be cautious as these transshipment tariffs may very well be a special type of ‘guidelines of origin', which may have a detrimental impression on our pharmaceutical and electronics exports the place the import element is excessive,” stated commerce professional Biswajit Dhar.
Indian commerce negotiators are within the US since final week to thrash out a deal earlier than the July 9 deadline for an interim deal to keep away from US reciprocal tariffs, however India has hardened its stance to guard its sensitivities.
