On July 7, local time, US President Trump signed an executive order extending the so-called "reciprocal tariff" suspension period, postponing its implementation from July 9 to August 1. Currently, the United States is stepping up trade negotiations with many countries, but the progress is significantly slower than the US expected.
The United States will continue to impose a 10% tariff on the UK
On May 8th, local time, US President Trump announced a trade agreement with the UK, partially rolling back tariffs in specific areas and further expanding market access for products from both sides.
The agreement includes: the US agreeing to reduce tariffs on the first 100,000 vehicles exported from the UK to the US to 10%. Vehicles exceeding this number annually will still be subject to a 25% tariff; a new trade bloc will be established for steel and aluminum products; and the previously announced 10% base tariff will remain in place.
The UK government announced plans to create $5 billion in new export opportunities for American farmers, ranchers, and producers, including over $700 million in ethanol exports and $250 million in other agricultural products. The agreement also reduces tariffs on US ethanol exports to the UK to zero, and steel exports to the US will no longer be subject to tariffs.
US imposes 20% tariff on Vietnamese goods
On July 2nd, local time, US President Trump announced that the United States and Vietnam had reached a trade agreement. The US will impose a 20% tariff on Vietnamese goods imported and a 40% tariff on goods from other countries transiting through Vietnam. Vietnam, in turn, will "fully open its market" to the US, allowing US companies to sell products to Vietnam at zero tariffs.
Vietnam's exports to the US primarily include clothing, footwear, and electrical machinery. US media, citing data from the Office of the US Trade Representative, reported that US imports from Vietnam in 2024 totaled over $136 billion, while US exports to Vietnam were approximately $13 billion. The US-Vietnam goods trade deficit exceeded $123 billion.
Impact on the global textile industry
The 20%-40% tariffs imposed by the United States on countries like Vietnam and Cambodia will directly impact the costs and production capacity of international brands producing in Vietnam. Data from the Vietnam Textile and Apparel Association indicates that over 35% of the production capacity of clothing brands like Nike and Lululemon is concentrated in Vietnam. Tariff costs will lead to higher end-sale prices, placing pressure on end consumers and further suppressing the consumer market.
In the long term, Southeast Asia's low-cost advantage may be diluted by high tariffs. Indirect exports, technological upgrades, and the production of high-value-added products will become the path forward for Chinese textile companies in global competition. However, tariffs will pose significant challenges to textile companies, especially small and medium-sized enterprises, and the global textile industry will face a dramatic industrial upgrade and reshuffle.