Donald Trump’s trade deal with Vietnam sheds light on his unconventional yet strategic approach to international trade. While the agreement itself may not have made major headlines compared to his dealings with China or the EU, it serves as a textbook example of how Trump conducted foreign economic policy — bold, bilateral, and driven by the trade deficit narrative.
Bilateral Over Multilateral
From the beginning of his presidency, Trump made it clear he favored bilateral trade deals over multilateral agreements. One of his first moves was pulling the U.S. out of the Trans-Pacific Partnership (TPP) — a pact that included Vietnam. He believed such broad agreements weakened American leverage. Instead, he pursued individual deals that allowed him to negotiate terms directly with each country.
Vietnam, a growing manufacturing hub in Southeast Asia, was high on his radar. The U.S. trade deficit with Vietnam ballooned under Trump, which he viewed as a one-sided relationship. His response: tough rhetoric and threats of tariffs.
Tariffs as Negotiation Tools
Trump wielded tariffs like weapons, often using them as a first move to force trade partners to the table. With Vietnam, he threatened tariffs on steel, aluminum, furniture, and electronics — key export sectors for the Vietnamese economy.
This aggressive stance wasn’t unique to Vietnam. It was a core part of Trump’s “America First” trade policy — using economic pressure to reset trade relationships he considered unfair. But Vietnam’s response was different from China’s: instead of retaliating, Hanoi moved quickly to negotiate.
Currency Manipulation Accusations
In 2020, the U.S. Treasury Department under Trump officially labeled Vietnam a currency manipulator. The administration accused Vietnam’s central bank of artificially weakening the dong to boost exports.
Though this marked a low point in U.S.-Vietnam trade relations, it also became a turning point. Vietnam agreed to work with the U.S. to improve transparency and avoid further escalation. Eventually, the manipulator label was dropped, showing that Trump’s aggressive posturing could lead to diplomatic resolution.
Geopolitical Calculations
Despite the confrontational tone, Trump’s deal-making with Vietnam was strategically calculated. Vietnam plays a key role in counterbalancing China’s dominance in the region. Trump’s administration understood this and avoided pushing Hanoi too far.
Rather than a sweeping deal, the Trump-Vietnam trade engagement resulted in sector-specific agreements and quiet diplomacy. It allowed both countries to maintain strong economic ties while addressing U.S. concerns.
Conclusion: Trump’s Trade Blueprint in Action
Trump’s deal with Vietnam reveals his broader trade playbook:
-
Prioritize bilateral over multilateral engagement
-
Use tariffs as leverage, not last resort
-
Focus on reducing trade deficits
-
Apply pressure, but remain flexible with allies
-
Combine economic goals with geopolitical strategy
While controversial, Trump’s approach yielded short-term results and kept key partners like Vietnam close. For future administrations, the Vietnam deal offers insight into a high-pressure, deal-driven approach to global trade that is likely to influence U.S. policy for years to come.
