Market Highlight 08.07.2025

   President Donald Trump has released the content of the first letters in a series of notifications outlining new reciprocal tariffs for key U.S trading partners, while signaling a willingness to continue negotiations and delay the tariff hikes until August 1. This effectively grants countries an additional three weeks to finalize trade agreements with the United States. Details from the latest round show that twelve countries have received notice of the new reciprocal tariff rates: Malaysia, Kazakhstan, and Tunisia will face a 25% tariff; South Africa will be subject to a 30% tariff; Laos and Myanmar will see a 40% tariff imposed. Other countries affected include Indonesia at 32%, Bangladesh at 35%, and both Thailand and Cambodia at 36%, Bosnia will face a 30% tariff, while Serbia will be subject to a 35% rate. The White House representative clarified that these reciprocal tariffs will not apply to goods already covered by separate U.S national security tariff measures. To date, President Trump has imposed national security tariffs of 50% on steel and aluminum and 25% on automobiles. The U.S Department of Commerce is also studying similar tariffs for semiconductors, timber, critical minerals, and copper. 
  The USD strengthened sharply on Monday, gaining 0,55% against a basket of major currencies after President Trump announced the new reciprocal tariffs set to take effect on August 1 for a range of countries, including Japan and South Korea. Market participants are increasingly concerned that the European Union may not reach a trade agreement with the U.S before the July 9 deadline, as negotiations between the EU and the U.S have progressed slowly despite multiple rounds of talks.
  The USD/VND interbank exchange rate traded mostly within the 26.150 - 26.170 range on Monday, as the market awaited more clarity on the U.S reciprocal tariffs targeting its trading partners. The downward trend in the exchange rate is expected to continue today, with the rate likely to move toward the 26.000 - 26.150 range.

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