What the U.S.-Vietnam trade deal tells us about the future of tariffs

President Donald Trump announced a trade deal with Vietnam

The temporary reduction of Trump's recical tariffs is set to end next week

The agreement has left other countries wondering what deals and tariffs could look for them in the future

Workers at a Thai Son S

Daniel Ceng | Anadolu | Getty ImagesGlobal attention turned to Vietnam on Thursday, after U

President Donald Trump announced a trade deal with Hanoi just days before Washington's recical tariffs come back in full force

Under the agreement, the U

Imports to Vietnam will meanwhile not be subject to tariffs

Trump also said that Vietnam had agreed to a 40% duty on any ducts that originally came from another country, but were sent to Vietnam for final shipment to the U

China has reportedly repeatedly relied on this practice, known as transshipping, to avoid trade barriers

Many nations have been left wondering how the future of their trade relationship with the world's largest economy could shape up. "What we learned from the Vietnam deal is, if anything, the tariffs are going to go up from here, not down," Sebastian Raedler, head of European equity strategy at BofA, told CNBC's "Europe Early Edition" on Thursday

But other countries might also now have an easier time negotiating, Mark Williams, chief Asia economist at Capital Economics, told CNBC. "Other countries will feel they should be able to lock in a lower tariff rate than the 20% that President Trump says Vietnam has agreed to," he said, noting that "Vietnam had an unusually weak negotiating hand" due to its strong dependency on trade with the U

More emerging market deals ahead

The deal could be cause for concern for other emerging market economies Vietnam, economists and strategists at Citi said in a note Thursday. "On balance, we believe there is more for EM Asia to worry than expect gains if this deal reflects what is to come soon," they noted

While the development removes uncertainty and suggests other agreements could emerge in the coming days, the 20% tariff rate is higher than the expected 10% levy on goods, according to Citi's experts

Watch now2:1602:16The market is not pricing in enough tariffs: BofA's RaedlerEurope Early Edition"Thailand ed by Malaysia might be more exposed than other EM Asia peers (apart from Vietnam)

A separate and more punitive tariff on transshipped goods was least expected by the market," the note said. "Additionally, there may be spillovers to other exporters that have set up factories in Vietnam in past years," for example Korea, it added

But experts speaking to CNBC spoke are expecting several more trade agreements to emerge in the coming days, with Williams noting that the U

Appears open to making these "rough" frameworks rather than "full" deals

One of the countries tapped as potentially being next to strike a deal is India, says Trinh Nguyen, senior economist for emerging Asia at Natixis CIB

The agriculture sector could emerge as an obstacle, as India "will find it hard to allow US market access without domestic backlash," she suggested

What the deal could mean for EuropeWhile the Vietnam-U

Deal suggests more deals ly lie ahead for other Asian countries, it does not necessarily mean that the same is true for the European Union, Lavanya Venkateswaran, senior ASEAN economist at OCBC Bank, told CNBC

These are the sticking points holding up a U. -EU trade deal"The Vietnamese authorities have been their intent to negotiate with the US, even before the recical announcements were made in April," she said by, adding that the same was true for other regional economies Indonesia and Malaysia. "Compared to these economies, the case with [the] EU has not always been smooth sailing and the US has been more public in its criticism of the EU at different times in the past few months," Venkateswaran said

Natixis CIB's Nguyen meanwhile added that "Vietnam shows that it is very difficult for Europe to get what it wants — which is tariff-free. "Some duties are ly to be imposed, she said, and while the EU could retaliate by applying equal tariffs on the U. , Nguyen expects the EU to agree to a 10% tariff and "try to take wins on the sectoral side. "A bare-bones deal is Europe's best hope in trade talks with the U. , sources sayTrade negotiations between the EU and U

Have been challenging and slow to develop, with sources telling CNBC that a bare-bones "political" deal with scant initial details may be the the EU's best hope at this point

Analysts and economists have also expressed uncertainty the lihood of a trade agreement, given key sticking points big regulation, taxation, and broadly mismatched world views