Trump announces trade agreement with Vietnam
US President Donald Trump has launched a new trade agreement with Vietnam that will now give the country full access to the US market. In a striking twist to trade relations, there will be no tariffs on products from the US that are exported to Vietnam. Previously, US goods faced a 46% tariff, which was due to come into force next week. Instead, the US government will now impose 20% tariffs on imports from Vietnam. This regulation could have a significant impact on the demand for Vietnamese products in the US.
The agreement also entails a steeper 40% tariff on goods that are rerouted through Vietnam. Trump described the trade agreement as a "great deal of cooperation" and emphasized that Vietnam is "totally opening up" the market for US products. Companies that have relocated their production to Vietnam will benefit from this new arrangement, as many factories from China have relocated there to escape the previous tariffs. While share prices initially rose after the announcement, these gains were dampened again by the announcement of the new tariffs. The Chamber of Commerce in Hanoi is optimistic about the new opportunities offered by the agreement, but also points out concerns about the definition of "trans-shipping".
Tesla deliveries fall by 14% in the second quarter
In the USA, Tesla $TSLA (+2.29%) recorded a 14% drop in vehicle deliveries in the second quarter. This is the second decline in a row and is causing excitement among investors. CEO Elon Musk is facing growing competition from companies such as BYD from China, which is making the situation even more difficult for Tesla. The figures come at a time when Trump is publicly considering cutting subsidies for Musk's company or even considering moving away. According to Trump, an investigation into the subsidies by the newly created Department of Government Efficiency, or DOGE, could result in significant savings for the government.
The figure of just over 384,000 vehicles delivered between April and June has caused concern. Some analysts, however, believe that this could be the low point and expect sales figures to stabilize by September. Tesla's involvement in Robotaxis could be crucial to its future performance, as buyers may be desperate for vehicles before EV tax credits expire.
Sources:
https://www.bbc.com/news/articles/c4gd66q0q7go
https://www.bbc.com/news/articles/ckgdydzxe6go