An initial trade deal with Vietnam offers a glimpse of how President Trump is pushing countries to cut back on trade with China.

On July 2, President Donald Trump finalized a new trade agreement with Vietnam, which he had personally negotiated with General Secretary Nguyen Xuan Phuc. The deal has a tariff of 20%, which will be assessed on all goods imported from Vietnam, and a 40% charge on any goods that might be considered transshipped goods.

The retail industry is breathing a sigh of relief after it appeared to avoid the worst case scenario on Vietnam tariffs