The US trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years, the latest evidence of the imprint on global commerce President Donald Trump is making with sweeping tariffs on imported goods.

U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties.

Prime Minister Mark Carney suggested he’s unlikely to add additional retaliatory tariffs on U.S. goods, but he is trying to help affected companies develop new products and find new buyers.

US President Donald Trump said he was “getting very close to a deal” with China to extend the trade truce that saw the two countries agree to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies.

Among the seven countries surveyed by S&P Global in July, Vietnam led with a PMI of 52.4, well above the ASEAN average of 50.1. New export orders rose for the fourth straight month, reaching their fastest growth rate since November 2024.

The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.

The US has implemented a new executive order, on July 31, 2025, that maintains existing rates for Vietnamese imports while imposing modified reciprocal tariffs on other countries.

US President Donald J. Trump signed an Executive Order on August 1 (Viet Nam time) which adjusts rates for 69 countries and territories listed in Annex I. The reciprocal tariffs on Vietnamese imports have been lowered to 20% from 46%.

The Thai Cabinet convened a special meeting on August 1 to approve a draft trade statement between Thailand and the US.

The US government’s 20% tariff on Vietnamese exports is straining the textile and seafood sectors by raising costs and reducing competitiveness, but industry leaders remain hopeful as businesses can adapt through operational optimisation and market diversification.