Trump announces Vietnam trade deal with 20% import tariff
The S&P 500 rose after Trump's post, with shares in furniture stocks and apparel makers recording gains. ON Holding, Nike and Lululemon all jumped to hit session highs.
Article content
Some U.S. officials wanted to calibrate tariffs for Vietnam and others in Southeast Asia to ensure they're sufficiently lower than what's imposed on China, to encourage production to leave that country.
Article content
The higher 40 per cent rate announced Wednesday would be imposed on goods deemed to be 'transshipping' — where components from China and possibly other nations are routed through Vietnam or subject to only minimal final assembly before being exported to the U.S.
Article content
That's been a major concern for Trump's top trade advisers, including Peter Navarro, who described Vietnam as 'essentially a colony of communist China' during an April interview with Fox News.
Article content
Full details of what goods would be subject to that higher rate were not immediately available.
Article content
Article content
U.S. exports to Vietnam were worth just US$15 billion last year. Trump touted the prospect of a boost in auto sales as a result of the deal.
Article content
'It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,' he wrote on Truth Social.
Article content
Although Trump shared the broad contours of the agreement, the White House has not yet released a term sheet or published any kind of proclamation codifying the arrangement. And some of the details could still be in development. The U.S. and U.K. first announced their own trade deal in early May, but it wasn't until mid-June that Trump signed an executive order implementing the accord. And even then, key details have been set aside to be addressed later.
Article content
While Trump and his team initially envisioned holding concurrent negotiations with dozens of trading partners, the president and his advisers have suggested in recent weeks that they will just focus talks with major economies and unilaterally issue levies on smaller countries or those that don't reach agreements.
Article content
Article content
The deal with Vietnam was struck after weeks of discussions during which the U.S. pressured the country to get tougher on trade fraud, ensure stricter enforcement against the transshipment of Chinese products, and also pushed for the removal of non-tariff barriers.
Article content
Vietnam offered to remove all tariffs and repeatedly promised to purchase more American goods. Senior Vietnamese officials flew to the U.S. to rally support and sign deals, including for US$3 billion of agricultural goods. The trade minister also wooed executives from Nike, Gap and others to encourage them to get behind negotiation efforts.
Article content
Officials in the country also touted the Trump Organization's plans to develop a $1.5 billion luxury resort complex, a project that will feature five-star hotels, golf courses and residential estates spanning more than 990 hectares.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
an hour ago
- Global News
‘Don't want Trump to decide my vacation': Maine town still seeing tourists amid U.S.-Canada tensions
This is Part 1 of a series looking at the impact of U.S.-Canada political tensions in Maine. Part 2 will take a closer look at how small businesses are coping. A Maine tourist hotspot is noticing a drop in Canadian tourists amid tensions between the United States and Canada, but the travellers who did cross the border say they have no intentions of changing their habits. Over the weekend ahead of Canada Day and the Fourth of July, the beaches at Maine's Old Orchard Beach were busy. Many Canadians have chosen to return to the town, like Kelly Raymond from Drummondville, Que., who travelled with her mother. She says while political tensions, including U.S. President Donald Trump's renewed rhetoric for Canada to become the 51st state, wasn't enough to stop them. Story continues below advertisement 'For the ocean, it's the closest we have,' she said. '(Political tensions) should have factored into our decision, but it didn't … I don't want to support here that much by like spending money here, but I want to take time off, so it's nice.' View image in full screen Old Orchard Beach in Maine relies heavily on Canadian tourism. Anna Mandin/Global News Fellow tourist Hillary Bolduc, also from Quebec, echoed that sentiment. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'I've been in Old Orchard Beach for about five years, and it doesn't really matter for me,' she said. Others put it more bluntly. 'I don't want Trump to decide my vacation,' said Annie Cherland. 'If we don't get tourists, we're going to be in bad shape' The town's Chamber of Commerce says Canadians make up 30 to 40 per cent of revenue for their average seasonal tourism industry. Story continues below advertisement Back in the spring, when Trump's rhetoric renewed patriotism in Canada, then-prime minister Justin Trudeau called out Old Orchard Beach by name in an impassioned speech. '[We're] angry. We're going to choose to not go on vacation in Florida or Old Orchard Beach,' he said at a news conference on March 4 in response to Trump's tariffs. The owner of an inn in Old Orchard Beach told Global News in March that more than 90 per cent of his bookings for the summer season had been postponed or cancelled entirely. Recent numbers released by the U.S. federal border crossing showed 85,000 fewer Canadians entered Maine in May than in the same month a year ago — a drop of about 27 per cent. As well, there have been growing calls within Canada to support local. 1:45 'Don't be a stranger': Maine governor trying to woo back Maritime neighbours New Brunswick Premier Susan Holt, for example, spent last week advertising local tourism options as an alternative to travelling to the U.S. Story continues below advertisement Maine Gov. Janet Mills travelled to the Maritime provinces last week to smooth over relations, speaking with the premiers and officials. 'I can understand the heartfelt angst that Canadians must have felt and must continue to feel,' Mills told a crowd during an event hosted by the Fredericton Chamber of Commerce on June 24. 'But I will say it is your neighbours across the border, the small businesses whose families come from New Brunswick, whose families come from Quebec, those small businesses are the ones who are being hurt right now.' Residents in Maine admit they've seen a drop in tourists — and perhaps fewer people on the beach so far. It's a worrying sight for an area that relies heavily on Canadian tourist dollars. 'Maine makes their money in the summer,' said Mary-Lynn Leach, a local from the area. 'And if we don't get tourists, we're going to be in bad shape,'
Globe and Mail
an hour ago
- Globe and Mail
Is This Growth Stock-Heavy Vanguard ETF Worth Doubling Up on in July?
Investors who doubled up on top growth stocks during the rapid sell-off in April were handsomely rewarded -- as the broader indexes are now hovering around all-time highs. But long-term investors know that the truly massive gains aren't made by timing the market or being fortunate enough to put capital to work during a sell-off. Rather, the rewards come from holding shares in excellent companies or exchange-traded funds (ETFs) long-term and letting those investments compound over time. Despite making new highs, there are still plenty of top tech stocks worth buying now for patient investors. Technology is the highest-weighted sector in the S&P 500 (SNPINDEX: ^GSPC) -- making up nearly a third of the index. The Vanguard Information Technology ETF (NYSEMKT: VGT) closely tracks this sector and charges a mere 0.09% expense ratio, or $9 for every $10,000 invested. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here's why the fund could still be worth buying now, as well as factors that could make it a poor choice for some investors. Leading from the top Ten years ago, Apple and Microsoft had a combined market cap of around $1.1 trillion, and Nvidia was a mere $11 billion company. Today, each of these tech companies has a market cap over $3 trillion -- and over $10.3 trillion combined. Data by YCharts Put another way, these three companies have added around $9 trillion in market cap to the S&P 500 in the last decade, while the S&P 500 has added just over $29 trillion. That means Nvidia, Microsoft, and Apple have contributed roughly a third of the gains in the index in the last 10 years. Understanding just how vital these names have been to broader market returns illustrates the impact of asymmetric gains. Today, Nvidia, Microsoft, and Apple make up 18.6% of the Vanguard S&P 500 ETF -- which tracks the index -- and 45.7% in the Vanguard Information Technology ETF. So, if you want outsized exposure to these three companies, the tech sector may pique your interest. It's worth mentioning that while Microsoft and Nvidia stocks hover near all-time highs, Apple has been a noticeable laggard -- down close to 20% year to date. Without that underperformance, the ETF would be up even higher. AI-driven growth potential Outside of those three top holdings, the tech sector offers far more exposure to software companies and the semiconductor industry than is available from an ETF that mirrors the performance of the S&P 500 or Nasdaq Composite (NASDAQINDEX: ^IXIC). In fact, semiconductors make up 28.8% of the Vanguard Tech ETF -- led by Nvidia's 14.2% weighting and Broadcom 's 4.5% weighting. Perhaps the most attractive quality of the tech sector is its diversified exposure to artificial intelligence (AI). Chip companies provide the computing power needed to handle increasingly complex AI models. Software companies like Salesforce are using AI to enhance their services through AI agents and other tools. Similarly, Microsoft has integrated AI tools through Copilots across its Microsoft 365 suite, as well as other platforms like GitHub for developers. Microsoft Azure is the No. 2 cloud computing service behind Amazon Web Services. However, it's worth noting that Amazon and Google Cloud parent company, Alphabet, are not in the Vanguard tech ETF because Amazon is in the Vanguard Consumer Discretionary ETF, and Alphabet is in the Vanguard Communications ETF. Many legacy tech companies that spent years underperforming the major benchmarks are undergoing resurgences thanks to AI. International Business Machines, Cisco Systems, and Oracle are examples of veteran tech companies that participate in the AI ecosystem through cloud, hardware, and/or software offerings. In sum, there are many phenomenal growth companies in the tech sector outside of the big three players. However, these companies make up a fraction of the S&P 500 index funds. So, buying directly into the tech sector is a good way to increase the impact of the companies in your portfolio. Big gains, big expectations The Vanguard Tech sector ETF can be an excellent tool for getting exposure to Nvidia, Microsoft, Apple, and hundreds of other tech companies. But before diving headfirst into the ETF, it's worth considering how the holdings will fit into your existing portfolio and if they match your risk tolerance. For example, if you already have a sizable position in one or more of those big three top holdings, then buying the Vanguard Tech ETF may be adding more exposure than you intended. Or if you hold growth-focused ETFs or even an S&P 500 ETF, then you already indirectly own many of the stocks in the Vanguard Tech ETF. So, if you're looking to invest more capital in tech stocks and are OK with boosting your exposure to existing holdings, the Vanguard Tech ETF could be a good idea. Another factor to consider is risk tolerance. Tech has dominated the broader market in recent years, which has inflated the valuations of many tech companies. To justify those valuations, earnings have to continue growing at impressive rates. Nvidia is a textbook example. The stock has skyrocketed to new highs, but so have the company's earnings. Over the last three years, Nvidia's stock price has jumped 835% -- but earnings are up 916% thanks to data center demand. So Nvidia's valuation has remained reasonable because it has sustained earnings growth. But the stock could look expensive if that growth cools off, even for factors outside of the company's control. Be mindful of maintaining diversification The tech sector can be highly volatile due to its cyclical nature and valuations based on future growth projections. The Vanguard Tech ETF is only worth considering if you're OK with these risks and how the ETF would fit into your existing portfolio. It may seem counterintuitive to buy stocks or an ETF that has increased so quickly. But the best companies grow into their valuations over time, and the tech sector is full of top companies. All told, the Vanguard Tech ETF may be worth a closer look in July. Another option is to scan the fund's holdings and select individual companies you don't own and want to build a position in. That way, you aren't putting an uncomfortable amount of money into existing holdings. Should you invest $1,000 in Vanguard Information Technology ETF right now? Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor 's total average return is1,045% — a market-crushing outperformance compared to178%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, International Business Machines, Microsoft, Nvidia, Oracle, Salesforce, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Chinese aircraft carrier sails into Hong Kong to boost patriotism
HONG KONG (AP) — China's first domestically-built aircraft carrier arrived in Hong Kong on Thursday as part of a drive to drum up patriotism, days after the former British colony marked the 28th anniversary of its return to Chinese rule. The Shandong entered the city's waters alongside another vessel from its battle group in the early morning hours. According to state media, two destroyers and a frigate had accompanied the aircraft carrier into Hong Kong. The warships will be open for public visits this weekend. All 10,000 available tickets for visits have already been claimed by eager residents. Two thousand of them were for seeing the Shandong, while the others were for one of the destroyers and the frigate, local media reported. The arrival of the carrier comes days after the Asian financial hub marked 28 years since it was turned over to China after more than a century of British colonial rule. The ship is China's second aircraft carrier and first to have been fully self-built. It is smaller than U.S. carriers, carrying 24 Shenyang J-10 fighters and weighing in at 70,000 tons fully loaded. China has redoubled its patriotism drive in Hong Kong since crushing anti-government and pro-democracy street protests in 2019. A large number of opposition figures have been imprisoned after the passage of a sweeping new national security law. Hong Kong enjoys a degree of semi-autonomy and civil liberties compared to other major Chinese cities. But its government has no jurisdiction over military and foreign affairs, with Chinese military officers and a garrison of land, sea and naval forces based in the city. In April, the Chinese military sent the Shandong, named after the Chinese province of the same name, to conduct training exercises with some naval and air forces in the eastern sea area and airspace of Taiwan, a self-ruled island Beijing claims as its territory. Beijing sends warplanes and naval vessels toward Taiwan regularly, and it has stepped up the scope and scale of these exercises in recent years. A month later, the Shandong and China's first carrier, the Liaoning, stirred considerable attention by conducting joint exercises in the Pacific beyond what is referred to as the first island group, showing a degree of assertiveness not seen before. The Liaoning, built from an unfinished hulk purchased from Ukraine, visited Hong Kong in 2017. Another carrier, this one with a flat top rather than the 'ski jump' type decks used by the first two, is undergoing sea trial and a fourth is under construction.
