Many Chinese manufacturers now plan to continue operating in Vietnam, after the US agreed to lower its tariffs on the country’s goods to 20 per cent.

Pressure for trade deals is mounting as the temporary reduction of Trump's reciprocal tariffs is set to end in a matter of days.

President Donald Trump said he had reached a trade deal with Vietnam following weeks of intense diplomacy between the nations and ahead of a deadline next week that would have seen higher tariffs imposed on the country’s imports.