The recent tariff agreement has calmed bilateral tensions between Hanoi and Washington, but new trade tensions could be in store.

Vietnam’s leadership was caught off guard by US President Donald Trump’s announcement last week that it agreed to a 20% tariff, and the Southeast Asian nation is still seeking to lower the rate, according to people familiar with the matter.

Vietnam rushed to meet the July 9 trade deadline set by U.S. President Donald Trump, hoping to escape a round of harsh reciprocal tariffs. But that early move has now left officials in Hanoi and major manufacturers facing more confusion than clarity.

Batteries Plus CEO Scott Williams said the chain has reduced its reliance on Chinese suppliers for car batteries in order to minimize tariff costs.

While countries such as India and Vietnam have attempted to negotiate US tariffs of well below 20%, Trump has said he’s eyeing blanket tariffs of 15% to 20% on most trading partners. This suggests the 20% level is no longer perceived as a penalty but rather as a standard in the negotiations.

Vietnamese Prime Minister Pham Minh Chinh and China's Premier Li Qiang have agreed to boost trade and investment ties between the two countries during a meeting on the sidelines of the BRICS summit in Brazil,

HO CHI MINH CITY] Tariff-free or not, American sport utility vehicles (SUVs) face a tough road in Vietnam where nearly half of all car sales go to SUVs, as buyers are likely to still favour leaner, fuel-efficient Japanese and Korean models over the bulky and petrol-guzzling US rides.

Foreign investors are expected to flock back to Vietnam’s stock market after the country received a lower-than-expected US tariff, said Thu Nguyen, deputy chief executive officer of VinaCapital Fund Management.