Donald Trump and Vietnam, Monetary Authority of Singapore and Singapore

Welcome to this week’s edition of top stock market highlights.

After weeks of intense negotiations, President Donald Trump has reached a trade deal with Vietnam ahead of a deadline on 9 July.

Recall that Trump had paused his list of reciprocal tariffs for 90 days after declaring his “Liberation Day” list of tariffs on more than 180 countries.

A 20% tariff will be imposed on all Vietnamese exports to the US, with the levy rising to 40% on any goods transhipped within the country.

In return, Vietnam has agreed to withdraw all levies on US imports.

This deal was secured by Trump after discussions with Communist Party chief To Lam.

This agreement was just the third to be announced, following agreements made with both the UK and China.

The previous reciprocal tariff rate for Vietnam was a high 46%, but was pared down to 10% as Trump entered into negotiations.

The deal was hammered out because Vietnam is viewed as a strategic partner in the US’s efforts to counteract China.

The country’s exports have also become consumer staples in the US.

Vietnam is a major supplier of textiles and sportswear and hosts manufacturing sites for companies such as Nike (NYSE: NKE), Gap Inc. (NYSE: GAP), and Lululemon Athletica (NASDAQ: LULU).

The total value of Vietnam’s exports to the US was worth almost US$137 billion, and its trade surplus with the US was the third-largest globally, behind only China and Mexico.

Vietnam has not only removed all tariffs on US imports but has also promised to purchase more American goods, making this a big win for Trump.

Changes are afoot for a range of investments as the MAS proposes new recommendations for financial products.

Investment-linked products (ILPs) will now require a product highlights sheet (PHS), while MAS has proposed to remove the requirement for investors to seek mandatory financial advice when purchasing “complex products”.

These are just some of the measures announced by Singapore’s central bank to revamp the financial products landscape.

For Collective Investment Schemes (CIS), MAS classifies these as non-complex if the CIS invests in simple products such as shares or gold.

However, CIS that meet investment restrictions but still invest a portion of investors’ funds outside the scope of its core investment approach are classified as “complex products”.

PHS is are documents that help to summarise the key aspects of an investment product, such as the main features, benefits, and risks.

These may include shares, bonds, or units in a CIS.