The US and Vietnam struck a trade deal

President Donald Trump announced a trade deal with the Southeast Asian country yesterday. According to the terms of the agreement, goods from Vietnam to the US will be subject to a tariff of 20%, while US products entering Vietnam will not face any duty.

Goods from third countries that transit through Vietnam before entering the US will face a 40% levy.

The trade deal comes just days before a July 9 deadline when stricter tariffs will be imposed.

Nike and other apparel manufacturers saw their stocks surge on the news, as they have been diversifying production away from China to Vietnam, Cambodia, and Indonesia.

Trump had earlier announced a trade deal with the UK.