The United States and Vietnam have agreed to begin talks for a trade deal, according to an announcement from Vietnam on Thursday.

This decision came just hours after US President Donald Trump said he would pause the 46% tariff on Vietnamese products for 90 days.

The Vietnamese government said both countries will work on removing as many trade barriers as possible to make trading easier.

This new step was made after a meeting in Washington between the US Trade Representative, Jamieson Greer, and Vietnam’s Deputy Prime Minister, Ho Duc Phoc.

The US Trade Representative’s office said that Greer and Phoc talked about improving trade between their countries and strengthening their relationship.

They also shared on X (formerly Twitter) that the Trump administration will keep working with trade partners to fix trade problems.

Vietnam relies heavily on trade. In 2023, almost 90% of the country’s total income came from selling goods and services to other countries, says the World Bank. Vietnam also has a trade surplus of over $123 billion with the US.

This new move could help both countries grow their economies and build stronger ties.