Vietnam plans new penalties for illegal transshipments after Trump deal

10/7/2025 16:54

Vietnam is preparing stricter penalties to crack down on trade fraud and the illegal transshipment of goods, and has focused its inspections on Chinese products as it tries to comply with commitments made to Washington, documents seen by Reuters show.



Last week, the Communist-ruled country struck a preliminary deal with U.S. President Donald Trump's administration that cuts planned U.S. tariffs on imports from Vietnam to 20% from the 46% level threatened in April.



But goods that Washington deems to be illegally transshipped through Vietnam will be subject to a 40% levy.



The new measures, which expand a crackdown in recent weeks on trade fraud and imported counterfeits, will be key to keeping on Trump's good side.



U.S. officials have repeatedly accused Vietnam of being used as a waypoint for Chinese goods destined for the United States.



The Vietnamese government will issue a new decree that will "prescribe additional levels of sanctions for fraud of origin," and introduce stricter measures and checks to prevent fraud, according to a July 3 trade ministry document.