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

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

© Kevin Frayer/Getty Images

The president said he had agreed to initial trade terms with Vietnam, the second country to strike a limited deal after Mr. Trump threatened steep tariffs.

The president said he had agreed to initial trade terms with Vietnam, the second country to strike a limited deal after Mr. Trump threatened steep tariffs.

© Linh Pham for The New York Times

As President Trump’s tariffs close off the U.S. market, Chinese goods are flooding countries from Southeast Asia to Europe to Latin America.

Shares of the company, CATL, surged in their first day of trading. Onshore U.S. investors were blocked from buying its stock as a “decoupling” of finance continued.

The outcome of the trade negotiations, which will continue on Sunday, could determine the trajectory of the global economy.

A movement of manufacturing to Vietnam that began in President Trump’s first term is accelerating as sky-high U.S. tariffs block Chinese exports.

The president said reducing tariffs to 80 percent from the current 145 percent “sounds right,” as U.S. and Chinese negotiators prepare to meet in Switzerland.

Shipments of goods to the United States plunged by 21 percent in April, but spiked to Asia as President Trump imposed sky-high tariffs on China.

Beijing says it will meet with American officials to discuss trade, but warned Washington against using the engagement to ratchet up pressure on China.

The threat of 46 percent levies, among the highest for any country, is rattling Vietnam’s factory managers and workers, as well as thousands of exporters.