Global market crashes amid Trumps tarriff war

The Vietnam-Index (VN), opened sharply lower, dropping over 60 points in less than an hour, retreating to around 1,255 points on Thursday April 3, 2025.

According to the economy Times, the market turned red as many stocks plunged, with several hitting their floor prices across different sectors.

Investors dumped stocks in panic due to concerns over new tariffs, causing a surge in market liquidity.

Trading volume and value soared to levels usually seen in a full trading session on previous days.

By 10 am on April 3, the VN-Index had lost over 60 points, equivalent to 4.76 per cent.

Many stocks faced sell-offs at floor prices, showing investors’ negative sentiment despite uncertainty over sectoral impact.

At the end of the morning session, selling pressure worsened after the break, pushing the VN-Index down by 87 points to 1,230.

The Ho Chi Minh Stock Exchange (HSX) witnessed a massive sell-off, with over 700 stocks declining and more than 200 hitting floor prices.

Industrial real estate stocks, expected to benefit from foreign direct investment, plummeted, with KBC, IDC, BCM, DXG, and DIG all crashing.

Steel stocks like HSG, NKG, TLH, fertiliser firms such as DCM, DPM, and chemical producers like CSV suffered major losses.

Agricultural and seafood exporters, directly impacted by new tariffs, faced heavy sell-offs, with MSN, DBC, PAN, IDI, VHC, and FMC all crashing.

Foreign investors continued offloading Vietnamese stocks, recording a net sell value of $88 million.

MBB saw the highest sell-off worth $20 million, followed by TPB with $12 million, FPT and VNM each losing $8 million.

Pham Luu Hung, chief economist at SSI Research, said uncertainty remains over the new tariffs’ full impact.

The initial 10 per cent tariff takes effect on April 5, while countermeasures could follow on April 9.

Hung noted that the 46 per cent tariff for Vietnam and 54 per cent for China may serve as negotiation limits.

Vietnam has shown goodwill by reducing tariffs on 14 products and approving Starlink’s operations after trade talks.

Foreign investors see trade-related risks as Vietnam’s biggest challenge, causing persistent net selling.

However, once the worst-case scenario is priced in, investors may reassess opportunities in undervalued sectors.

Hung said during the 2018 US-China trade war, valuations were twice as high as now, hinting at possible recovery.

By April 8-9, when tariffs take effect, market sentiment may shift, leading to potential rebounds.

Global markets also suffered, with Dow Jones futures tumbling 1,069 points, S&P 500 futures losing 3.6 per cent, and Nasdaq futures plunging 4.5 per cent.

Nike and Apple stocks dropped around 7 per cent, while US retailers like Five Below fell 14 per cent, Dollar Tree 11 per cent, and Gap 8.5 per cent.

Tech giants suffered as well, with Nvidia down 5 per cent and Tesla sliding 7 per cent amid rising investor fears.

The sell-off followed President Donald Trump’s announcement of sweeping new tariffs on imports into the US.

Trump imposed a 10 per cent tariff on all imports, with Vietnam facing a 46 per cent tariff and China 54 per cent.

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