Vietnam recorded a $114 billion trade surplus with the United States in the first half of this year, federal data shows, making it the largest source of the U.S. merchandise trade deficit ahead of Taiwan, Mexico and China. U.S. imports from Vietnam rose 40% to $123 billion, helped by a tariff gap that leaves Vietnamese goods facing an effective rate of 6.5% in June, compared with 23.2% for Chinese goods and a 7% global average. Companies including Apple, Nike and Lululemon have shifted production from China to Vietnam, while imports from China fell to $129 billion from $168 billion a year earlier. The boom has prompted debate over Chinese transshipment, though industry representatives say machinery, electronics and electrical equipment account for about 60% of Vietnam’s U.S. exports and reflect substantial local production. The widening imbalance could test Washington’s tariff policy and Vietnam’s manufacturing, logistics and labor capacity.