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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because The announcement of a trade deal between the United States and Vietnam could potentially boost the stock prices of American automobile manufacturers like Ford Motor Company and General Motors Company, as they gain tariff-free access to the Vietnamese market. This could also positively impact ETFs such as the Vanguard Consumer Discretionary ETF and Consumer Discretionary Select Sector SPDR Fund, which include automotive stocks. Conversely, the VanEck Vietnam ETF might experience volatility due to the imposition of high tariffs on Vietnamese exports to the U.S.
Here are some of the stocks that might be affected:
Ford Motor Company ((F)),
General Motors Company ((GM)),
Tesla Motors ((TSLA)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Vanguard Consumer Discretionary ETF ((VCR)),
VanEck Vietnam ETF ((VNM)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares U.S. Industrials ETF ((IYJ)).