After a panic sell-off, steel stocks have recovered today (February 11). Analysts say the outlook for the steel industry in 2025 remains positive.
How Vietnamese steel enterprises will be affected by the new developments in US taxes will take more time to assess - Photo: HPG
US President Donald Trump has just signed proclamations to increase tariffs on steel and aluminum imports to a flat 25% and eliminate all exemptions for all countries.
In a recently released report, SSI Securities (SSI Research) analysts said that this is an extension of the Section 232 tax issued in 2018 by Mr. Trump, which initially set a fixed rate of 25% for steel imports but included exemptions for some countries such as Canada, Mexico, Brazil, South Korea and the UK.
Accordingly, the new tax, effective March 4, 2025, maintains the Section 232 tax and eliminates all exemptions.
SSI experts commented that for Vietnam, steel imports into the US have been taxed at 25% since 2018 under Section 232, so Vietnamese steel is not too affected by this tax increase.
In fact, the new tax action may even be somewhat positive for Vietnam's steel industry because it puts Vietnam's import tax rate (before taking into account other protective taxes) on par with other countries, SSI Research optimistically assessed.
The market reaction on February 11 was also somewhat calmer for steel stocks. There was no longer a sell-off or strong correction like on February 10. Some codes such as HPG of Hoa Phat or NKG of Nam Kim Steel turned green again.
However, SSI experts pointed out that the more worrying point is the impact from other types of taxes such as CVD (countervailing duty) and AD (anti-dumping duty). Of which, AD tax is still under investigation. Preliminary AD results are expected to be announced in the coming months.
Speaking to Tuoi Tre Online , a representative of a steel company also expressed caution in assessing the impact of the US tax imposition. There are many uncertain factors and the impacts will be a long-term story that needs further observation, according to this person.
According to statistics from KB Vietnam Securities Analysis Center (KBSV), galvanized steel export activities to the US - Mexico markets contributed 18.6%; 26.2%; 31.9% of revenue of Hoa Sen Group (HSG), Nam Kim Steel (NKG) and Ton Dong A (GDA) in 2024, respectively.
What should Vietnamese steel enterprises do?
KBSV experts believe that manufacturing enterprises need to increase competition in the domestic market to maintain revenue growth. In addition, export enterprises will also focus on expanding to new markets (areas that have not yet applied tariff barriers to Vietnamese steel) to maintain consumption output.
Source: https://tuoitre.vn/du-bao-trien-vong-nganh-thep-truoc-tin-ap-thue-tu-ong-trump-20250211182433313.htm
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