On April 2, President Donald Trump announced a new tax policy, applying a basic tax rate of 10% on imported goods and a higher counterpart tax for more than 60 countries, including Vietnam and China. The 46% counterpart tax rate applied to Vietnam is expected to have a major impact on some of Vietnam's export industries.
Immediately after President Donald Trump's announcement of a comprehensive tax plan, the US stock market fell into chaos. Future contracts in the stock market plummeted as investors faced a much higher tax rate than expected.
The sell-off wave also hit Vietnamese ETFs in the session on April 2, right after the Trump administration imposed a 46% tax on Vietnamese imported goods.
VanEck Vietnam ETF, a fund with a scale of 420 million USD, plummeted by 3.2% in the late trading session. As for Global X MSCI Vietnam ETF, with a scale of less than 11 million USD, it fell sharply by 6.5%. The sell-off wave also spread to other Asian markets, as President Trump simultaneously announced a series of countervailing tariffs targeting many countries.
The Indian ETF certificate was also significantly affected, with the iShares MSCI India ETF (INDA) falling about 2.8% after the country faced a counterpart tax of 26%. Meanwhile, iShares MSCI Japan ETF (EWJ) decreased by 3.2% before the 24% tax on their goods.
iShares MSCI China ETF (MCHI) decreased by about 2.4% after the Trump administration imposed a counterpart tax of up to 34%.
Opening trading session on April 3, the Vietnamese stock market also fell into a state of strong sell-off across the market. At the beginning of the trading session, the market fell straight at more than 67 points (at 9:10 am), falling sharply to 1,200 points with red covering the market.
Experts predict that the sell-off will be strong today when investors are quite confused and recommend that investors keep a reasonable ratio due to the risks still lurking in some stock groups.
