Last week, the White House announced trade deals with Vietnam (VNM). However, readers will find little to no official response from Vietnam. In effect, Trump’s tariffs will fall to 20%, while tariffs on transshipping goods (goods originating outside of Vietnam) are at 40%.
Currency markets continued to react negatively to the trade deal. The U.S. dollar remained weak. The U.S. dollar index (DXY) is down 10.63% in 2025, compared to a 7.78% decline over the past year.
Over the weekend, Japan’s tariff negotiator, Ryosei Akazawa, said that he held in-depth exchanges on a phone call with U.S. Commerce Secretary Howard Lutnick. Japan wants to avert a resumption of the 24% reciprocal tariff on imports. Toyota Motor (TM) and Honda (HMC) are automotive stocks to watch. They have the most to lose from U.S. tariffs.
In the energy market, Americans enjoyed gas prices at their lowest level in four years. The national average price for a gallon of gas was around $3.16. This is down by 10% Y/Y. Fortunately, investors are not deterred by the weak prices. Oil and gas stocks continued to rebound. Chevron (CVX), Shell (SHEL), and Occidental Petroleum (OXY) trade at attractive valuations.
Hurdles remain. OPEC+ is increasing the pace of oil output. IT plans to add 548,000 bpd next month.
