Vietnam Aims to Boost U.S. Imports Amid Tariff Concerns; Fed Maintains Rates; Disney Streaming Drives Earnings Surge

Vietnam plans to increase imports from the U.S. to reduce its trade surplus and avoid a proposed 46% tariff on textiles. The U.S. Federal Reserve kept interest rates unchanged, citing strong job data and ongoing trade talks with China. The Walt Disney Company reported a 7% revenue increase in Q2 2025, driven by growth in its streaming services and domestic theme parks.

Vietnam Moves to Rebalance Trade with U.S.

Vietnam has signaled its intent to purchase more high-value American goods as it enters critical trade negotiations with the United States. The move comes in response to a proposed 46% reciprocal tariff on Vietnamese textile and garment exports, a sector that has become increasingly vulnerable due to its reliance on U.S. markets and imported raw materials.

According to Vietnam’s National Statistics Office, the country’s trade surplus with the U.S. narrowed sharply in April to $577 million, down from $1.64 billion in March. This shift may reflect early efforts to address U.S. concerns over trade imbalances. In 2024, the U.S. ran a nearly $124 billion trade deficit with Vietnam, making it the third-largest after China and Mexico.

Vietnamese officials have pledged to open their markets further and increase purchases of U.S. goods, including agricultural products and technology, as part of a broader strategy to avoid punitive tariffs. U.S. Trade Representative Jamieson Greer previously urged Vietnam to improve the trade balance and combat trade fraud, prompting Hanoi to commit to enhanced monitoring of product origins and tariff reductions on American imports.

In the first quarter of 2025, Vietnam’s imports from the U.S. rose to $4.1 billion, nearly matching the 22% year-on-year growth in exports, which reached $31.4 billion. The increase in imports is partly attributed to rising domestic demand and the need to mitigate the impact of U.S. tariffs on key sectors such as textiles and furniture.

However, Vietnam’s manufacturing model remains heavily dependent on imported inputs, particularly cotton and yarn from China and India. With U.S. tariffs also affecting these countries, Vietnamese manufacturers face rising production costs and supply chain pressures. The lack of clear product-specific guidelines from the U.S. side has further complicated planning for Vietnamese exporters.

The upcoming U.S.–Vietnam tariff negotiations, scheduled for May 7, are expected to be a pivotal moment in defining the future of bilateral trade relations.

Fed Holds Rates Steady Amid Trade Uncertainty and Strong Jobs Data

On Wednesday, the Federal Reserve announced it would maintain its benchmark interest rate, opting for a wait-and-see approach amid ongoing trade tensions and mixed economic signals. The decision follows a solid April jobs report, which showed the U.S. economy added 177,000 jobs—well above expectations of 138,000—while the unemployment rate held steady at 4.2%.

Fed Chair Jerome Powell emphasized that the central bank is closely monitoring the economic impact of President Trump’s tariff policies, particularly as trade talks with China resume. “The tariff shock hasn't hit yet,” Powell said, noting that the Fed would not respond preemptively to policy changes that have yet to materialize in economic data.

Despite the strong headline employment numbers, some economists have pointed to signs of underlying weakness. Average hourly wages rose just 0.2% in April, the lowest monthly increase since 2023, and hiring rates remain near decade lows. Corporate layoff announcements, including UPS’s plan to cut 20,000 jobs, have also raised concerns about a potential slowdown.

Markets responded with cautious optimism. U.S. stock futures rose in pre-market trading on news of resumed U.S.-China trade talks and the Fed’s decision to hold rates. However, volatility remains high as investors weigh the implications of potential new tariffs, including a threatened 100% levy on foreign-made films.

Disney Reports Strong Q2 Earnings, Streaming Segment Leads Growth

The Walt Disney Company reported a strong second fiscal quarter for 2025, with revenue rising 7% year-on-year to $23.6 billion and net income reaching $3.28 billion, a sharp turnaround from a $20 million loss in the same period last year. Adjusted earnings per share climbed 20% to $1.41, exceeding Wall Street expectations.

Disney’s streaming business was a key driver of growth. The company added 1.4 million Disney+ subscribers in the quarter, bringing the total to 126 million. Combined with Hulu, total subscriptions reached 180.7 million. Operating income for the Direct-to-Consumer segment rose by $289 million to $336 million, marking a significant improvement in profitability.

CEO Bob Iger highlighted the company’s performance across its Entertainment and Experiences divisions, noting that the results reflect successful execution of strategic priorities. “Following an excellent first half of the fiscal year, we have a lot more to look forward to,” Iger said, citing upcoming theatrical releases and the launch of ESPN’s new direct-to-consumer offering.

Disney’s domestic parks and experiences segment also posted strong results, with operating income up 13% to $1.8 billion. Consumer products grew 14% to $400 million. The company repurchased $1 billion in shares during the quarter and remains on track to complete $3 billion in buybacks for the fiscal year.

Looking ahead, Disney raised its full-year adjusted EPS guidance to $5.75, a 16% increase over fiscal 2024. The company also reported $17 billion in cash from operations, $2 billion above prior guidance, aided by the deferral of tax payments.

References

• Vietnam’s Textile Sector Amid US Tariff Pressures: Risks and Opportunities
• Vietnam Says It Wants to Buy More From US as Trade Talks Begin
• US-China trade talks, Fed decision, Disney earnings: 3 Things
• Strong labor market data doesn't mean the coast is clear for the US economy
• The Walt Disney Company Reports Second Quarter and Six Months Earnings for Fiscal 2025 - The Walt Disney Company
• Disney Gains Surprise 1.4 Million Disney+ Subscribers as Streaming Profit Surges, CEO Iger Says ‘We Remain Optimistic’ About Fiscal 2025 Outlook
• Streaming and Experiences Help Disney Beat Wall Street Expectations in Latest Quarter