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Trump touts a Vietnam trade deal victory—but details on transshipment and import pledges remain unclear

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With less than a week to go before the U.S.-imposed July 9 deadline for new trade deals, U.S. President Donald Trump unveiled a new trade deal with Vietnam, a country that has rapidly become one of the largest exporters to the U.S.

On Wednesday, Trump announced on Truth Social, his social media platform, that the U.S. will impose a 20% tariff on Vietnamese exports to the U.S. Goods deemed to have been transshipped through Vietnam will get a 40% levy. 

In return, Trump claimed Vietnam will drop all tariffs on U.S. goods and “open their market to the United States,” pointing to U.S.-made SUVs as a “wonderful addition” to Vietnam’s roads. 

Vietnam’s benchmark VN-Index climbed by 0.5%, as of 1:00am Eastern. Shares of U.S. companies with a major manufacturing presence in Vietnam rose. Nike rose 4%, while Apple jumped by 2.2%. 

Vietnamese state media reports that To Lam, General Secretary of the Communist Party of Vietnam and the country’s leader, spoke with Trump on Wednesday to discuss the tariff negotiations. According to the report, the U.S. will “significantly reduce reciprocal tariffs on many Vietnamese imports,” and that Trump “highly valued” Vietnam’s pledge to grant preferential market access for U.S. goods, including large-engine vehicles. To Lam also reportedly urged Washington to lift export restrictions on certain high-tech goods. 

The deal makes Vietnam one of a few governments that has reached an accord with Washington since April 2, or “Liberation Day.” Trump struck a deal with the UK in early May, and reached a trade truce with Beijing last week.

Still, details of the U.S.-Vietnam trade agreement are murky. “The interpretation of transshipment is unclear,” DBS Bank wrote in a research note. 

Transshipment refers to a practice where goods are moved from one vessel to another before being shipped off to their final destination. Yet the Trump administration also accuses Vietnam of being a backdoor for Chinese goods to evade U.S. tariffs. 

Illegal transshipment typically involves changing the certificate of origin to a new country, without adding significant value. 

Vietnam has turned into a key manufacturing hub for global supply chains. Apple, Nintendo, and other electronics manufacturers moved final assembly of their products to Vietnam, both to avoid U.S. tariffs on China and to diversify their supply chains.

These components often come from Chinese suppliers, but Vietnam-based manufacturers are also adding value through final assembly, before the goods are shipped to the U.S.

“I suspect the terms are still being developed. This is likely to be more of a framework,” says Deborah Elms, head of trade policy at the Hinrich Foundation.

The details of the agreement can also shift between Trump’s announcement and when the deal is formalized through an executive order. That process could take weeks: the U.S. and U.K. announced their deal in early May, which wasn’t formalized until mid-June.

“The details will be extremely important,” Elms cautions. “Depending on the product and the manufacturing process, the rate could be lower or much higher, up to 40%. The uncertainty is set to continue for some time.”

A significant increase in purchases of American SUVs might also be a tall order for Vietnamese consumers. The average monthly income of a Vietnamese worker is about $320, significantly less than an average American worker. 

Vietnam’s biggest purchases from the U.S. were computers and electronic products, and machinery and instruments, according to Vietnam government data. The country likely imported these goods to support its electronics manufacturing. 

A 20% tariff is less severe than the 46% rate first proposed in early April. Yet it still makes a ramp up in trade frictions between the U.S. and Vietnam. It’s also double the baseline 10% tariff rate imposed on all imports.

Vietnam is highly exposed to the U.S., with 30% of its exports headed there, according to DBS.

DBS predicts a possible short-term rally in Vietnam’s stock markets ahead of the release of second quarter GDP, which the country’s deputy prime minister suggests will be a strong 7.6% year-over-year. “However, brace for signs of an economic slowdown should export front-loading dissipate,” the bank warns. 



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JetBlue flight near Venezuela avoids midair collision with U.S. Air Force tanker

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A JetBlue flight from the small Caribbean nation of Curaçao halted its ascent to avoid colliding with a U.S. Air Force refueling tanker on Friday, and the pilot blamed the military plane for crossing his path.

“We almost had a midair collision up here,” the JetBlue pilot said, according to a recording of his conversation with air traffic control. “They passed directly in our flight path. … They don’t have their transponder turned on, it’s outrageous.”

The incident involved JetBlue Flight 1112 from Curaçao, which is just off the coast of Venezuela, en route to New York City’s JFK airport. It comes as the U.S. military has stepped up its drug interdiction activities in the Caribbean and is also seeking to increase pressure on Venezuela’s government.

“We just had traffic pass directly in front of us within 5 miles of us — maybe 2 or 3 miles — but it was an air-to air-refueler from the United States Air Force and he was at our altitude,” the pilot said. “We had to stop our climb.” The pilot said the Air Force plane then headed into Venezuelan air space.

Derek Dombrowski, a spokesman for JetBlue, said Sunday: “We have reported this incident to federal authorities and will participate in any investigation.” He added, “Our crewmembers are trained on proper procedures for various flight situations, and we appreciate our crew for promptly reporting this situation to our leadership team.”

The Pentagon referred The Associated Press to the Air Force for comment. The Air Force didn’t immediately respond to a request for comment.

The Federal Aviation Administration last month issued a warning to U.S. aircraft urging them to “exercise caution” when in Venezuelan airspace, “due to the worsening security situation and heightened military activity in or around Venezuela.”

According to the air traffic recording, the controller responded to the pilot, “It has been outrageous with the unidentified aircraft within our air.”

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Trump admits he can’t tell if the GOP will keep the House despite massive investment pledges

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President Donald Trump admitted that he’s not sure if his economic policies will pay off for Republicans at the ballot box in 2026.

In an interview with the Wall Street Journal that was published late Saturday, he pointed to massive investment pledges that he’s secured since returning to the White House.

But when asked if Republicans will lose control of the House in next year’s midterm elections, Trump replied, “I can’t tell you. I don’t know when all of this money is going to kick in,” adding that forecasts say the second quarter.

Trump has previously touted as much as $21 trillion of investments pouring into the U.S., though recent commitments don’t come close to adding up to such levels.

Still, under trade deals Trump has negotiated, the European Union has vowed $600 billion in investment, Japan $550 billion, and South Korea $350 billion. Separately, Saudi Arabia has promised $1 trillion. Companies have also announced plans to invest hundreds of billions of dollars, though some of that includes money planned during the Biden administration.

While the timing of all the money is uncertain, not to mention how much will actually be spent, companies have expressed the need to diversify supply chains with more domestic production. Apple has said its $600 billion pledge to build U.S. factories will create a “domino effect” that ignites manufacturing across the country.

At the same time, Wall Street expects Trump’s tax cuts from his One Big Beautiful Bill Act to deliver a significant jolt of fiscal stimulus to the economy next year, potentially reaccelerating GDP growth.

That would come as voters made clear in last month’s off-year elections that affordability is their top priority. Inflation has cooled from its 2022 high, but prices are up sharply from pre-pandemic levels, and consumers are revolting over higher insurance, electricity and grocery bills. Even most Trump voters say the cost of living is bad.

Trump has dismissed the affordability issue as a Democratic “hoax” and insists prices are down. He told the Journal that he will lower prices.

“I think by the time we have to talk about the election, which is in another few months, I think our prices are in good shape,” Trump said.

“I’ve created the greatest economy in history. But it may take people a while to figure all these things out,” he added. “All this money that’s pouring into our country is building things right now—car plants, AI, lots of stuff. I cannot tell you how that’s going to equate to the voter, all I can do is do my job.”

Trump has floated some ideas to appease voters on affordability, including a 50-year mortgage to lower monthly payments and $2,000 “dividend” checks. He also continues to pressure the Federal Reserve to lower rates, even though it could worsen inflation, and rolled back tariffs on some food imports.

In his interview with the Journal, Trump didn’t say if he would cut tariffs on other goods. He also warned that if the Supreme Court strikes down his global tariffs, his alternatives are not as “nimble, not as quick.”

 “I can do other things, but it’s not as fast. It’s not as good for national security,” Trump added. 



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Nicotine pouches can be a better alternative to cigarettes says CEO

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Smoking is one of the clearest public-health failures of our time. More than 500,000 Americans still die each year from smoking-related illnesses, and globally the picture is even more alarming. In the United States, anti-smoking campaigns have reduced the number of new cigarette users, but the effectiveness of these measures may be fading. Indeed, the headline of a widely-shared news story notes “Celebrities Are Making Smoking Cigarettes Cool Again”. Yikes. Meanwhile, a quick trip to Mexico, Europe, or Asia is enough to see that cigarettes remain very much in style.

Reducing cigarette use, and preventing a new generation from getting hooked on nicotine, is a noble goal. That is one reason James Monsees and Adam Bowen founded the vape company JUUL Labs, as a potentially less harmful alternative for adult smokers. But a mix of regulatory missteps by a hostile FDA and market loopholes opened the door to a wave of counterfeit and bootleg vapes, often imported from China, sold in local stores, highly addictive, and completely unregulated. Many people became sick from using vapes with unknown ingredients. Teenagers were easily able to access bootleg vapes from China in youth-friendly flavors. What began as an idealistic goal—moving adult smokers off of cigarettes—turned into a new epidemic. 

Now we have two problems: cigarettes and vapes.

I believe science and technology can solve both. I was a tobacco user who became addicted to vaping. I tried everything to quit and cut down my nicotine use. Eventually, I discovered Swedish-style white pouches. That experience led me to create Sesh+, a premium, tobacco-free nicotine pouch made with transparent ingredients. It has been life-changing for me personally: I haven’t picked up a vape since switching to pouches. In Sweden, where oral nicotine products have been widely used for decades, smoking rates are among the lowest in Europe and smoking-related disease is correspondingly lower.

There is growing evidence that nicotine itself, while addictive, is not what primarily causes smoking-related disease; it’s the toxic byproducts of combustion that kill. With vaping, the concern is different: it’s the lack of transparency and quality standards that should alarm us. As a health-conscious consumer, I want to know exactly what I’m putting into my body. That’s why our pouches are independently lab-tested for contaminants like heavy metals and are manufactured in the United States under strict quality controls. 

Fake nicotine pouches are already in the U.S. market. Sofia Hamilton writes for Reason that her favorite convenience store unknowingly sells counterfeit nicotine pouches, and how only someone deeply familiar with FDA nicotine rules could tell the difference. No one should have to be a nicotine policy expert just to know whether a product is safe.

Important questions remain. We do not want to create a product that attracts people who don’t already use nicotine. The average Sesh+ customer is over 35, and I’m very proud of that. Early data is encouraging: a recent Rutgers study found that new nicotine users taking up pouches remains very low. Government has a responsibility to keep black-market and counterfeit pouches out of consumers’ hands. Industry must ensure retailers are educated and know what they’re selling. And we need strong youth prevention laws.

Nicotine pouches will only be effective if industry and government work together to ensure we are not attracting youth or non-nicotine users.

In the U.K., the proposed Tobacco and Vapes Bill would ban people born in or after 2009 from ever purchasing nicotine products. In the United States, we have already raised the legal age to buy tobacco to 21. These are the kinds of measures our industry should support. If the legislation in the U.K. passes, I hope other countries will adopt similar policies to prevent youth from accessing nicotine products. I also hope to see product-verification technology adopted as an industry standard so counterfeit nicotine products never reach consumers. Age verification is not enough; we must ensure a market for counterfeit and bootleg nicotine pouches does not emerge.

If companies in the nicotine pouch space work together, we can learn from JUUL’s experience and avoid repeating the same mistakes. Our responsibility is clear: help adult smokers move to potentially less harmful alternatives, without creating a new generation of nicotine users. If we get this right, a world free from tobacco is not just aspirational. It’s achievable.

Max Cunningham is the CEO of Sesh+, a nicotine pouch company based in Austin, Texas and backed by 8VC. The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



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