Trump’s inauguration: What to expect?

President Donald Trump began his term with sweeping executive actions, focusing on energy and immigration. He declared a national energy emergency to boost domestic production and withdrew from the Paris Climate Accords. However, in the trade landscape, the new president did not announce any immediate tariff increases on Monday, even on goods from Mexico and Canada as he mentioned recently. This provides a short relief for U.S. trading partners, including Vietnam. For the FX market, developments during Trump’s inauguration, coupled with the SBV’s proactive measures and robust pre-Tet remittance inflows, are likely to ease upward pressure on the USDVND in the near term, especially cancellable forward contracts SBV offered to its counterparties three weeks ago are set to mature this week (23rd Jan 2025). As a result, we predict the exchange rate to remain stable through the last trading week before the Lunar New Year.