Macron signs $10 billion worth of deals with Vietnam amid tariff pressures

During his state visit to Vietnam, which occurred in May 2025, French President Emmanuel Macron and Vietnamese officials signed multiple agreements totaling approximately $10 billion. This marked the first visit by a French president to Vietnam in nearly a decade, highlighting the strengthening ties between the two nations amid a backdrop of international trade tensions. Notable agreements included the purchase of 20 Airbus A330neo planes and commitments to collaborate on nuclear energy and defense systems. The visit comes at a time when both Vietnam and France are grappling with the implications of U.S. tariffs. The Trump administration had announced steep tariffs of 46% on Vietnamese exports and 50% on French goods, scheduled to take effect in July 2025, prompting both countries to strategize their trade relationships. In this context, Macron's visit underscores a broader concern in Europe regarding Vietnam's potential to secure advantageous trade agreements with the U.S. that could adversely affect European exporters. Furthermore, as part of the same initiative, additional agreements were expected to be revealed shortly after Macron's arrival in Vietnam, emphasizing the urgency of the diplomatic mission. Analysts have cautioned investors to remain cautious about the optimism surrounding Trump's delayed tariffs on the EU, as economic pressures continue to build globally. In the automotive sector, for instance, the effects of tariff uncertainties were evident, as Swedish automaker Volvo Cars announced plans to eliminate approximately 3,000 jobs in response to the economic landscape shaped by U.S. trade policies. Such measures reflect the growing need for companies to adapt their strategies to mitigate financial losses resulting from the changing trade climate. Overall, Macron's visit and the resulting agreements represent a strategic maneuver by France to bolster economic ties with Vietnam while navigating the complexities introduced by ongoing tariffs imposed by the United States. The long-term implications of these agreements may play a crucial role in shaping trade dynamics between Europe and Southeast Asia in the years to come.