Market continues to crash

[sg-united]

Trump has a lot of cards on hands. Hence, he can play very big especially to small countries.

Currently, Trump is using trade as a weapon. He still has a trumped card which make the world hell loose, i.e. the US dollar. If one go and study the implications of US dollar as a weapon, the result is 10x more catastrophic than a trade war. The world better prays hard that he doesn't unleash the titan.

Coming back to Vietnam. It is the largest exporter to US in SEA. Of course, it cannot retaliate at all.

The hardest-hit sectors will be those with the largest export volumes to the U.S. - electronics, phones, computers, and components, which are dominated by foreign direct investment (FDI) companies. Others include seafood, furniture, textiles, footwear, and agricultural products, all of which heavily rely on the U.S. market.

Vietnam is not in a position to retaliate as aggressively as the EU, China, or Canada due to its smaller economy and deep dependence on the U.S. market.

Vietnamese and American products are more complementary than competitive, the impact on domestic production would be minimal.

 

[Zinna]

No no, my thinking is...

If Vietnam faster makes a deal with the US to reduce tariffs to 0%. MNCs around the world, even those sellers at China, will faster move over to open factories in Vietnam so their products will be "Made in Vietnam" to bypass the tariffs. Whereas if they still sell at their own country they will face the tariffs.

And if many companies start pumping investments into Vietnam, the dong will appreciate and it won't be as weak as before. Everyone may benefit.

Of course, my thinking and 'in theory' nia...

There is nothing vietnam can offer to get 0% tariffs from Trump. What deal do you even have in mind that trump will accept?
And remember, his goal is not to have MNC open shop in vietnam, but in USA. In his mind, all the existing brands like nike should be in US doing the manufacturing

 

[Rellit]

This whole debacle is such an oxymoron. On one hand US wants its currency to be the world reserve currency, on the other hand kpkb on trade deficit

 

[yiron]

No no, my thinking is...

If Vietnam faster makes a deal with the US to reduce tariffs to 0%. MNCs around the world, even those sellers at China, will faster move over to open factories in Vietnam so their products will be "Made in Vietnam" to bypass the tariffs. Whereas if they still sell at their own country they will face the tariffs and Americans won't buy since it is 10-97%+ more expensive than before.

And if many companies start pumping investments into Vietnam, the dong will appreciate and it won't be as weak as before. Everyone may benefit.

Of course, my thinking and 'in theory' nia...

The problem is that those require long term investments and all it takes is a tweet from Trump to dash their hopes. The uncertainty factor is a killer.

 

[tazzycorner]

in case this wasn't already shared:


Trump said in a social media post that he spoke with the head of Vietnam’s ruling Communist Party about potentially cutting stiff new U.S. tariffs on imports from that country down to “zero” if the two nations can negotiate a deal.

On Wednesday, Trump slapped a new tariff of 46% on goods imported from Vietnam, which is set to take effect next week.

“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.” Trump wrote on Truth Social.

“I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” Trump wrote.

Nike’s share price rose after Trump’s post. About 25% of Nike’s footwear is made in Vietnam.

 

[yiron]

This whole debacle is such an oxymoron. On one hand US wants its currency to be the world reserve currency, on the other hand kpkb on trade deficit

Same as how Trump wants to promote crypto yet forgetting that crypto was created to counter fiat, and fiat USD is the only thing keeping US afloat despite its massive deficit.

There's a simple reason though. The crypto bros paid him off.

 

[Mechafanboy]

Yeah, Vietnam said they willing to bring their tariffs down to 0%, in the hopes US will also lift Vietnam's tariffs.

Because of this news, Nike and those companies whose factories are in the VN soared...

Ya sia, I was expecting SG or MY to give in first. Next, Japan. Never expect Vietnam. LOL

The viets don't get it. This is about trade surplus/trade deficit. Reducing tariffs on US imports will not be enough to offset the trade deficits with the US. vietnam ain't wealthy nor trusted enough, to purchase US made goods.

 

[BunnyPancake]

Trump has a lot of cards on hands. Hence, he can play very big especially to small countries.

Currently, Trump is using trade as a weapon. He still has a trumped card which make the world hell loose, i.e. the US dollar. If one go and study the implications of US dollar as a weapon, the result is 10x more catastrophic than a trade war. The world better prays hard that he doesn't unleash the titan.

Coming back to Vietnam. It is the largest exporter to US in SEA. Of course, it cannot retaliate at all.

The hardest-hit sectors will be those with the largest export volumes to the U.S. - electronics, phones, computers, and components, which are dominated by foreign direct investment (FDI) companies. Others include seafood, furniture, textiles, footwear, and agricultural products, all of which heavily rely on the U.S. market.

Vietnam is not in a position to retaliate as aggressively as the EU, China, or Canada due to its smaller economy and deep dependence on the U.S. market.

Vietnamese and American products are more complementary than competitive, the impact on domestic production would be minimal.

The problem is that those require long term investments and all it takes is a tweet from Trump to dash their hopes. The uncertainty factor is a killer.

There is nothing vietnam can offer to get 0% tariffs from Trump. What deal do you even have in mind that trump will accept?
And remember, his goal is not to have MNC open shop in vietnam, but in USA. In his mind, all the existing brands like nike should be in US doing the manufacturing

Great points.

That's why I like reading this thread and everyone's posts.

Kudos and toast to everyone here.

 

[tazzycorner]

The viets don't get it. This is about trade surplus/trade deficit. Reducing tariffs on US imports will not be enough to offset the trade deficits with the US. vietnam ain't wealthy nor trusted enough, to purchase US made goods.

there's probably nothing else they can do

 

[toolbox03]

in case this wasn't already shared:


Trump said in a social media post that he spoke with the head of Vietnam’s ruling Communist Party about potentially cutting stiff new U.S. tariffs on imports from that country down to “zero” if the two nations can negotiate a deal.

On Wednesday, Trump slapped a new tariff of 46% on goods imported from Vietnam, which is set to take effect next week.

“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.” Trump wrote on Truth Social.

“I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” Trump wrote.

Nike’s share price rose after Trump’s post. About 25% of Nike’s footwear is made in Vietnam.

Nike will be the next rolex, better buy more to keep

 

[coolhead]

Bright spot according to JP given the pented up demand.

Need xhb to outperform s&p500 in order for s&p 500 to have strength to get back to 200dma.
So far in past 5days, it has outperformed s&p 500

 

[hardindex]

No no, my thinking is...

If Vietnam faster makes a deal with the US to reduce tariffs to 0%. MNCs around the world, even those sellers at China, will faster move over to open factories in Vietnam so their products will be "Made in Vietnam" to bypass the tariffs. Whereas if they still sell at their own country they will face the tariffs and Americans won't buy since it is 10-97%+ more expensive than before.

And if many companies start pumping investments into Vietnam, the dong will appreciate and it won't be as weak as before. Everyone may benefit.

If those companies move back to the US to open up plants/factories, and with the labour cost, the overall is more expensive... And no doubt other countries will put tariffs on the US, so it is not feasible in the long-run...

Of course, my thinking and 'in theory' nia...

https://www.wionews.com/world/vietn...p-tariffs-will-other-countries-follow-8926949

 

[Trader11]

Yeah, Vietnam said they willing to bring their tariffs down to 0%, in the hopes US will also lift Vietnam's tariffs.

Because of this news, Nike and those companies whose factories are in the VN soared...

Ya sia, I was expecting SG or MY to give in first. Next, Japan. Never expect Vietnam. LOL

No one in Vietnam can afford to buy US stuffs…lol they can import all they want from US to Vietnam…haha

 

[Trader11]

Bloody useless Lawrence Wong and his uncle Gan….Vietnam is cutting tariff to 0%

What are these monitoring lizards doing?

 

[EdenHazard]

The recovery will be swift and v shaped

 

[chongquan82]

vietnam not enuff

must cut -100%

if not , cut from swift

 

[Krabs.]

i look at market carpet , it have delay not realtime
only about 15 of the 500 still positive .... literally 485 red

 

[yiron]

Miran talks and the market doesn't like it.

 

[yiron]

Best, he talked until SPX broke session low.

 

[hwarzoner]

Dow -1880 ....