Trump targets trade loopholes exploited by China
President Trump just struck a trade deal with Vietnam, dropping tariffs on Vietnamese goods sent to the US from a proposed 46% down to 20%.
There's also a hefty 40% tariff on products simply passing through Vietnam—a move aimed at stopping China from dodging US tariffs by rerouting its exports.
The agreement also pushes Vietnam to open up more to American products and tighten rules so only real "Made in Vietnam" goods get through.
Deal is about keeping China in check
This deal isn't just about the US and Vietnam—it's really about keeping China in check.
For years, Chinese companies have used Vietnam as a backdoor to sneak their goods into the US and avoid tariffs.
Now, with stricter rules and higher penalties for transshipped goods, both countries will need to crack down on trade fraud.
For young people watching global trends, this is another chapter in the ongoing tug-of-war over who controls international trade—and it could shape where your favorite gadgets or sneakers come from next.