Treasury Sec. Bessent on Vietnam trade deal framework

Trade Policy & Tariffs - The US is considering 20% tariffs on goods coming from Vietnam [2] - These potential tariffs are not stacked on top of the existing 10% tariffs [1] - The deal with Vietnam is reportedly finalized in principle [2] - The previous administration encouraged companies to shift production from China to Vietnam [3] Inflation & Margin Pressure - The speaker believes tariffs are not inherently inflationary, but could cause a one-time price increase [4][5] - The impact of tariffs may be absorbed by producers in Vietnam to maintain market share [6] - Apparel companies experienced abnormally high margins during COVID, suggesting potential for normalization [6] Trade Dynamics - A significant portion of trade from Vietnam is suspected to be transshipment from China [3] - Businesses have already adjusted to the existing 10% tariffs [4]