##  [# Vietnam ETFs Plunge on Trump Tariffs, China ETFs Hold Up ](/sections/features/vietnam-etfs-plunge-trump-tariffs-china-etfs-hold) 

 

# Vietnam ETFs Plunge on Trump Tariffs, China ETFs Hold Up 

 

 

\- The VanEck Vietnam ETF plunged by 10% on Thursday.  
\- Vietnam’s economy is heavily reliant on exports to the U.S.  
\- Other Asia-focused ETFs also moved sharply.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Apr 03, 2025

 Edited by: David Tony

 

 

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The [**VanEck Vietnam ETF (VNM)**](/vnm) plunged nearly 10% on Thursday following President Donald Trump's announcement of sweeping new tariffs on Vietnam.

Under Trump’s proposed plan, imports from Vietnam would face a 46% tariff—a figure the president described as “reciprocal,” arguing that Vietnam charges the U.S. a 90% tariff.

In reality, while Vietnam does impose high tariffs on some U.S. goods, its average tariff rate is far lower than 90%. Trump’s proposed tariff appears to be based not on actual tariff levels but on the size of the goods trade deficit.

In 2024, the U.S. imported $136.6 billion worth of goods from Vietnam while exporting only $13.1 billion, resulting in a trade deficit of $123.5 billion. Trump’s "reciprocal" tariff seems to be derived by dividing that deficit by the total value of imports—a misleading calculation that doesn’t reflect tariff policy.

## VNM Wipes Out 2025 Gains

Investors reacted sharply. VNM sank on the news, wiping out its year-to-date gains. As of Thursday’s close, the ETF was roughly flat on the year after previously trading up by 10%.

Vietnam’s economy is heavily reliant on exports to the U.S., with the country shipping around $140 billion worth of goods to America last year—nearly a third of its GDP. That reliance helps explain why VNM was hit much harder than ETFs focused on other Asian economies.

For comparison, the [**iShares MSCI China ETF (MCHI)**](https://www.etf.com/MCHI) was down less than 1% on Thursday, despite an announced 34% increase in tariffs on China.

Combined with earlier tariff hikes, the total U.S. tariff burden on Chinese goods could rise to 54%. Still, MCHI remains up 15% year to date, as investors bet that China’s larger and more diversified economy can absorb the hit better than Vietnam’s.

Other Asia-focused ETFs making moves on Thursday include:

- [**iShares MSCI India ETF (INDA)**](/inda): -0.5%
- [**iShares MSCI Taiwan ETF (EWT)**](/ewt): -4%
- [**iShares MSCI Japan ETF (EWJ)**](/ewj): -4%
- [**iShares MSCI Indonesia ETF (EIDO)**](/eido): -2.6%

 
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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Vietnam](http://www.etf.com/topics/vietnam) 

 [Asia-Pacific](http://www.etf.com/topics/asia-pacific) 

 [China](http://www.etf.com/topics/china) 

 [India](http://www.etf.com/topics/india) 

 [Taiwan](http://www.etf.com/topics/taiwan)