US-Vietnam Deal Risks China Reprisal, Bloomberg Economics Says

A new trade deal between the US and Vietnam risks provoking retaliatory steps from China as the accord includes a 40% tariff on goods deemed to be transshipped through the Southeast Asian country, according to Bloomberg Economics.

Under the deal, a 20% tariff will be placed on Vietnamese exports to the US, with a 40% levy on any goods deemed to be transshipped — a measure likely directed at China which has used other nations to skirt US import duties.