Market Highlight 14.07.2025

  On Saturday, U.S President Donald Trump sent a formal letter notifying that a 30% tariff will be imposed on goods imported from the European Union and Mexico, effective August 1. This latest move in the United States’ global trade war raises the stakes for intensive negotiations aimed at lowering tariffs before the start of next month. President Trump stated he would consider reducing tariffs if the EU grants full market access and allows U.S goods to enter without any additional duties. The newly announced 30% rate replaces the current blanket U.S tariff of 10% applied to most EU goods. According to the Office of the United States Trade Representative, the EU - comprising 27 member states - is America’s largest trading partner, with total merchandise trade reaching USD 975,9 billion in 2024. On a single-country basis, Mexico remains the United States’ largest trading partner, with total merchandise trade approaching USD 840 billion in 2024.
  The USD continued to strengthen against major currencies, appreciating against the Japanese yen (+0,81%) and the euro (+0,1%), after President Trump escalated trade tensions by proposing that the minimum reciprocal tariff on other countries could be raised to 15% or 20% from the current base level of 10%. Market focus this week will turn to China’s second-quarter GDP growth figures and the U.S June reports on inflation and retail sales.
  The USD/VND interbank exchange rate closed Friday at 26.110, with an intraday low of 26.075. Over the past week, the exchange rate fell by approximately 0,2%, supported by positive signals from the recently concluded trade agreement between Vietnam and the United States. Selling pressure on the interbank market is expected to remain dominant, while robust foreign capital flows in Vietnam’s stock market will likely continue to support the downward trend in the exchange rate this week, potentially moving toward the 26.000 level.

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