Peter Schiff’s warning about Trump’s Vietnam trade deal is proving accurate right now, as Americans face higher costs while Vietnamese consumers benefit from lower prices. Schiff’s Trump Vietnam deal critique highlights that Trump’s Vietnam trade deal creates inflation risks and rising supply chain costs for American consumers. This 20% tariff agreement also accelerates the de-dollarization trend affecting global markets at the time of writing.
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How Vietnam Trade Fallout, Inflation, And De-Dollarization Collide
The Schiff Trump Vietnam Deal Warning Materializes
Peter Schiff stated:
“As a result of Trump’s trade deal with Vietnam, Americans are losers and Vietnamese are winners, relative to their positions under Biden. Americans will suffer by paying higher prices for Vietnamese imports, while the Vietnamese will enjoy paying lower prices on American imports.”
As a result of Trump's trade deal with Vietnam, Americans are losers and Vietnamese are winners, relative to their positions under Biden. Americans will suffer by paying higher prices for Vietnamese imports, while the Vietnamese will enjoy paying lower prices on American imports.
— Peter Schiff (@PeterSchiff) July 3, 2025
Trump’s Vietnam trade deal imposes a 20% tariff on Vietnamese goods and also includes a 40% transshipping tariff. These inflation risks are already materializing as prices increase for American consumers right now.
Trump announced the agreement on Truth Social:
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping.”
Rising Supply Chain Costs Hit American Wallets
Schiff’s Trump Vietnam deal criticism proves valid as rising supply chain costs affect consumers. AlixPartners found that a 10% tariff on Vietnamese goods would cause an imported men’s sweater to rise 8% in price, and that’s just the beginning.
US Federal Reserve Chairman Jerome Powell stated:
“Officials expect that the impacts of Trump’s tariffs will start to show up more during the summer months.”
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The trade deal involving Vietnam causes further inflation risks as the Vietnamese exports make up 30 percent of its GDP which is led by Trump. De-dollarization, in this context, is gaining pace as the world tries to avoid dollar-denominated trade and experts opine that this could be a game changer in international trade.
This warning which Schiff gave on Trump’s Vietnam deal is an indication of the way the trade policies aimed at safeguarding the interests of Americans hurt consumers by increasing the prices and lowering the purchasing power of consumers.
