Reciprocal tariffs: A painful blow

The U.S. has announced a sweeping reciprocal tariff policy affecting over 180 countries, marking a shift toward intensified trade tensions. Vietnam was hit particularly hard with a 46% tariff, much higher than expected. While this will impact the economy, the government’s proactive measures may help maintain competitiveness and attract investors. In the short term, the stock market may face a correction due to slower economic growth, exchange rate pressures, and weaker investor sentiment, with the index potentially dropping to 1,000–1,100 before recovering. Export industries like textiles, seafood, and wood products are expected to suffer, while infrastructure sectors related to transportation, logistics, and industrial estates could see long-term negative effects.