According to experts, imposing a 25% tax on all steel and aluminum imported into the US will more or less affect Vietnam's steel export activities. Photo: Hai Nguyen
Not too affected
US President Donald Trump has signed an executive order imposing a 25% tariff on all steel and aluminum imports into the US, on top of existing tariffs on metals imported into the US, marking another major escalation in Mr Trump’s trade policy overhaul.
According to the American Iron and Steel Institute (AISI), Canada is the number one foreign supplier, supplying 6.6 million tons of steel to US buyers in 2024. Brazil, Mexico, South Korea and Vietnam round out the top five sources of US imports.
Speaking with Lao Dong Newspaper, Counselor and Head of the Vietnam Trade Office in the US - Mr. Do Ngoc Hung assessed that currently, Vietnam's aluminum and steel products are subject to tax rates of 10% and 25% respectively under Section 232 that the US has applied since 2018 to most countries, some products are excluded from the US list.
“The US applies this to all imported goods, we still have many opportunities to continue exporting because in reality, the production capacity of US steel and aluminum manufacturers cannot immediately meet domestic demand. However, the profit margin of exporting enterprises will decrease. Difficulties in exporting to the US will also affect the supply chain, steel/aluminum from countries that have difficulty exporting to the US will find ways to export to other countries, including Vietnam,” Mr. Do Ngoc Hung assessed.
According to Mr. Tran Hoang Son - Director of Market Strategy, VPBank Securities Joint Stock Company (VPBankS), currently the major sources of steel imports into the US in the recent period are Canada, Brazil, Mexico, South Korea and Vietnam. At the same time, Canada is the largest aluminum supplier, accounting for 79% of the market share. With high tariffs, countries such as Vietnam and China export to the US with a relatively small proportion, only around 3%. Therefore, the impact on Vietnam is not too great.
According to experts, US President Donald Trump's imposition of a 25% tax on all steel and aluminum imported into the US will more or less affect Vietnam's steel exports. Graphics: Tuyet Lan
Businesses are not subjective, ready with response scenarios
A representative of Duc Phuc Mechanical Trading Company Limited said that the US's imposition of import tax on steel and aluminum could cause enterprises exporting these products in other taxed countries to seek protection for domestic production. This would lead to difficulties in exporting steel and aluminum from Vietnam to these markets.
This person informed that the US imposing a 25% tax on imported steel and aluminum will push steel and aluminum exporting countries to switch to other markets, including Vietnam. This increases competition, causing difficulties for domestic steel and aluminum manufacturing enterprises.
The Ministry of Industry and Trade said that recently, three clear trends have emerged in world trade: De-globalization; or fragmentation in international trade, causing tariff tools to be used again; market protection through technical measures, trade barriers or trade defense measures and unpredictable policy moves that disrupt, damage, and even break the supply and production chain.
In recent times, in the face of complicated developments in the world market situation, the Ministry of Industry and Trade has directed the Foreign Market Departments and the system of Vietnamese Trade Offices abroad to closely monitor and grasp information on market developments, economic, political and policy fluctuations in the region and the world affecting trade with Vietnam in order to promptly advise the Government on appropriate policy responses. The Ministry of Industry and Trade is also proactively developing scenarios and response plans when global trade tensions escalate.
Businesses are advised not to put all their eggs in one basket.
In an interview with Lao Dong Newspaper, Ms. Nguyen Thi Huong, Director General of the General Statistics Office (Ministry of Planning and Investment), recommended that domestic steel and aluminum production and export enterprises should promptly acknowledge and estimate the difficulties caused by the US's 25% increase in steel and aluminum import tax. From there, recommend that the State issue support policies and create favorable conditions for production and export activities. Closely follow the market and implement solutions to optimize production costs, reduce prices, increase profits, and at the same time diversify export markets, implementing the strategy of "not putting all eggs in one basket" to avoid possible risks from the import market.
Laodong.vn
Source: https://laodong.vn/kinh-doanh/my-ap-thue-25-len-nhom-thep-viet-nam-van-co-co-hoi-1463252.ldo
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