In recent months, the US has signed significant trade deals with several nations. In May, a US-UK trade agreement was hailed as historic by the White House. On 27 June, President Donald Trump signed a trade deal with China aimed at ending the ongoing trade war.

Meanwhile, President Trump announced on Wednesday that a deal had also been reached with Vietnam. Under the new terms, the US will impose a 20 per cent tariff on Vietnamese imports, down from a previously proposed 46 per cent. In return, Vietnam will not impose tariffs on US goods, though it's unclear if Vietnam has formally agreed to this condition.

Also, US secretary of commerce Howard Lutnick said products re-exported by other countries through Vietnam would be entitled to a 40 per cent tariff.

Other countries, including India, Indonesia, South Korea, and Thailand, are also negotiating with the Trump administration on tariffs.