Weakly metamorphosed Archean sedimentary and volcanic rocks of the Vermilion district, northern Minnesota, occupy an east–west-trending belt between gneisses of the Vermilion granitic complex to the north and the Giants Range batholith to the south. All the measured strain, a foliation, and a mineral lineation in this belt are attributed to the "main" phase of deformation (D2). Foliation strikes parallel to the belt and dips steeply, and the mineral lineation plunges moderately to steeply east or west and is parallel to the maximum stretching direction, X, and subparallel to fold hinges. An earlier, possibly nappe-forming, event (D1) left little evidence of fabric in the Vermilion district.A number of features indicate that the D2 deformation involved a significant component of dextral strike-slip shear in addition to north–south compression. They include ductile shear zones with sigmoidal foliation patterns, shear bands, asymmetric pressure shadows, and the fact that the asymmetry of the F2 folds is predominantly Z. Other features are more simply explained by a deformation involving simple shear. The S2 cleavage is locally folded, and a new spaced cleavage developed in an orientation similar to that of the old cleavage away from the folds. We consider this the result of a process of continuous shear, with perturbations of flow resulting in folding of S2 and the development of a new foliation axial planar to the folds. The same type of perturbation can lead to the juxtaposition of zones of constrictional and flattening strains, a distinctive feature of the rocks of the Vermilion district otherwise hard to account for. The strain pattern requires a north–south component of shortening in addition to shear. The D2 deformation in the Vermilion district can therefore be characterized as one of transpression: oblique compression between two more rigid lithospheric blocks to the north and south.