Tariffs have taken center stage in global financial market discussions since early April. Unpredictable policy moves by U.S. President Donald Trump have roiled stock markets in many countries—and Vietnam is no exception. As a highly open economy, with total import-export turnover reaching 160% of GDP in 2024, Vietnam is expected to feel the brunt of the new U.S. tariff policy. The basic tariff rate of 10% is unlikely to cause major disruptions, as it aligns with the standard rate commonly applied worldwide, according to SSI Securities Corporation. However, the threat of reciprocal tariffs poses a much greater risk to global trade, primarily because supply chains and market demand cannot be quickly or easily realigned. Reciprocal tariffs are touted as a tool not only to maintain trade balance and boost budget revenues, but also to address concerns raised by the United States. They effectively set a ceiling that serves as a baseline for negotiations. U.S.-encouraged measures include increasing purchases of American goods, lowering import duties, expanding market access for U.S. agricultural products, easing entry for American businesses into Vietnam, and issuing a decree on “strategic trade control” to help address intellectual property concerns. It remains uncertain whether the 46% tariff on […]