How a clause in the US-Vietnam trade deal could upend Asia’s supply chains

The inclusion of a 40 per cent tariff on transshipped goods could ‘open up a can of worms’ for the whole region, analysts said

However, the agreement has a sting in the tail. US President Donald Trump also said in a social post announcing the deal that goods deemed to be transshipped via Vietnam would face a far higher levy of 40 per cent.

It remains unclear exactly how the transshipment clause will work in practice, but analysts said the provision could have far-reaching implications – not only for Vietnam, but also for the wider region.