Market Highlight 07.05.2026

President D. Trump’s recent remarks about raising tariffs on European cars serve as a warning to markets that the war in Iran has not reduced the U.S Government’s focus on its trading partners. Last Friday, Trump said the U.S would raise import tariffs on European cars and trucks to 25%, from the 15% level that had been agreed under a preliminary trade deal last summer. He said the European Union had failed to comply with the agreement and that the higher tariff rate would take effect this week. This move has disrupted what had been a relatively stable period in U.S - EU economic relations, between two economies whose annual bilateral trade is estimated at around 1,5 trillion USD. It also shows that uncertainty remains for U.S trading partners even months after agreements have supposedly been reached, despite global attention having shifted toward the Middle East.
Beyond the threat of tariffs on European automobiles, Trump has also publicly mentioned the possibility of scrapping the trade agreement signed with Mexico and Canada. That agreement is due for review this year. The administration is also working to replace tariffs that were struck down by the U.S Supreme Court earlier this year, while continuing to negotiate the details of trade agreements with several Asian countries. President D. Trump may further expand his tariff authority later this year, when the Office of the United States Trade Representative (USTR) completes its trade investigations, which are expected to lead to new tariffs replacing those invalidated by the Supreme Court in February.
The USD Index fell nearly 0,5% on Wednesday, supported by expectations that a peace agreement between the U.S and Iran is being advanced. Domestically, interbank USD/VND traded steadily around 26.320 - 26.350 yesterday.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn