TRUMP’S TAX BLOWS AWAY $40 BILLION FROM VIETNAM’S STOCKS
In a devastating financial shockwave, Vietnam’s stock market has plummeted, losing an estimated $40 billion in value, following U.S. President Donald Trump’s imposition of a staggering 46% tariff on Vietnamese imports, effective April 9, 2025. The announcement, made on April 2, triggered an immediate and brutal reaction, with the benchmark VN-Index crashing 6.68%—nearly 88 points—to close at 1,229.84 on Thursday, wiping out all gains made since January. This seismic drop, one of the sharpest in Vietnam’s history, has left investors reeling, businesses scrambling, and the government racing to mitigate a crisis threatening the nation’s economic ambitions—all while Trump’s trade war escalates, casting a shadow over Southeast Asia’s rising star.
The tariff, part of Trump’s “Liberation Day” agenda, targets Vietnam’s $136.6 billion in exports to the U.S.—its largest market, accounting for 30% of GDP in 2024. With a trade surplus of $123.5 billion last year, Vietnam had become a prime target for Trump’s reciprocal tariff push, which now includes 20% levies on Canada and Mexico and a 10% baseline globally, alongside threats of a 50% hike on China. The 46% rate, a “discounted” response to Vietnam’s alleged 90% “charge” on the U.S. (a figure tied to its surplus), has obliterated market confidence. By Friday, trading volume on the Ho Chi Minh Stock Exchange hit $1.21 billion, with 505 stocks sinking and foreign investors dumping nearly $73.6 million—the highest sell-off in three months.
Vietnam’s economic ascent—fueled by a shift of manufacturing from China amid earlier U.S.-China trade spats—now teeters on the edge. Companies like Nike, which sources 50% of its footwear from Vietnam, and Adidas, with 39%, saw shares tumble as the tariff threatens their supply chains. The VN-Index’s collapse erased $40 billion in market cap, a figure dwarfing Vietnam’s $5.74 billion supermarket profit for 2024, per WinCommerce. “It’s a shock for the global economy, and for Vietnam,” said economist Vo Tri Thanh on X, as Prime Minister Pham Minh Chinh clung to an 8% GDP growth target despite OCBC Bank slashing forecasts to 5%, a 1.2-point hit from the levies.
The human toll is stark. In Hanoi, traders stared at screens in disbelief as stocks like Masan Group (MSN) and Mobile World (MWG) hit floor prices, joining 175 others in the red. “Years of gains—gone in a day,” a local investor lamented on X, where #VietnamCrash trended alongside “TrumpTariffs.” Factories in Hai Phong, churning out electronics and apparel for the U.S., face an uncertain future; exports could drop 40%, per OCBC estimates, threatening millions of jobs in a nation of 100 million. Chinh ordered a task force to confront the chaos, but with the Dow off 1,200 stateside and U.S. inflation at 4.3%, global ripples amplify Vietnam’s pain.
Trump’s move isn’t isolated—it’s a sledgehammer in a broader war. China’s 34% retaliatory tariff on U.S. goods, paired with a $1 trillion Treasury dump threat, looms large, while Vietnam’s concessions—cutting duties on U.S. planes and approving Starlink trials—failed to sway the White House. A Friday call between Trump and Vietnam’s leader To Lam hinted at talks, with Trump calling it “very productive” on Truth Social, but the 46% rate stands firm. “We’ll negotiate, but they’ll pay until it’s fair,” Trump boasted, as Commerce Secretary Howard Lutnick insisted on X: “This reorders global trade—get used to it.”
Vietnam’s not alone in the crosshairs—Japan’s Nikkei fell 2%, and Canada slapped 25% counter-tariffs on U.S. cars—but its exposure stings hardest. Once a darling of diversification, with imports to the U.S. up 19% in 2024 to $136.6 billion, Vietnam now faces a reckoning. “We outgrew China’s shadow—now this,” a Weibo user taunted, as Vietnam’s steel exports (up 143.4% to 1.2 million tons) and footwear dominance falter under the tax. Goldman Sachs warns of a $500 billion U.S. GDP hit if retaliation spreads, yet Trump’s base cheers: “JD Vance was right—China’s peasants don’t own us anymore!” an X post crowed.
Critics see madness. “Trump’s tariffs are the dumbest way possible,” Senate Minority Leader Chuck Schumer quipped, as Apple shed $638 billion in market cap over three days. Vietnam’s Pham Minh Chinh pushes talks with export giants, but the $40 billion loss—coupled with a 6.7% VN-Index plunge—casts doubt on recovery. “It’s not alarming if we negotiate,” an expert told *The Investor*, yet Hanoi’s leverage is thin against Trump’s resolve and Vance’s “hillbilly” defiance of global elites.
Where does Vietnam go? Chinh’s task force eyes U.S. farm imports, but $3.4 billion in 2024 barely dents the $123.5 billion surplus. Factories may pivot to Asia, but 46% tariffs choke that too. On X, hope flickers—“Trump invited to Hanoi, maybe a deal?”—but despair dominates: “$40 billion gone—our dreams with it.” In 2025’s chaos—Musk’s $70 million suit, Kim Soo Hyun’s $5 million gift—Vietnam’s stock crash is a warning: Trump’s tax doesn’t just blow away billions; it risks blowing up a nation’s future. America’s VP Vance stands firm, but for Vietnam, the fight’s just begun.
