Not too affected
US President Donald Trump has signed a decree imposing a 25% tariff on all steel and aluminum imports into the US. This tax rate is higher than the current import tax on metals into the US, marking another major escalation in Mr. Trump's trade policy reform.
According to the American Steel Institute (AISI), Canada is the number 1 foreign supplier, supplying 6.6 million tons of steel to US buyers in 2024. Brazil, Mexico, South Korea and Vietnam are among the top 5 sources of imports in the US.
Speaking with Lao Dong Newspaper, Tham An, Head of the Vietnam Trade Agency in the US - Mr. Do Ngoc Hung assessed that currently, Vietnamese aluminum and steel products are subject to a tax rate of 10% and 25% respectively according to Section 232 applied by the US since 2018 for most countries, some products are excluded from the US list.
The US applies 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 countries will have difficulty exporting to the US to find export routes to other countries, including Vietnam" - Mr. Do Ngoc Hung assessed.
According to Mr. Tran Hoang Son - Market Strategy Director, VPBank Securities Joint Stock Company (VPBankS), currently the major sources of steel imports to 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 taxes, countries like Vietnam and China export to the US in a rather small proportion, only about 3%. Therefore, the impact on Vietnam is not too great.
Enterprises are not subjective, ready for response scenarios
A representative of Duc Phuc Mechanical Trading Company Limited said that the US imposing tariffs on steel and aluminum imports could cause businesses exporting this product to other countries subject to tariffs to seek protection for domestic production. This will lead to difficulties in Vietnam's exports of steel and aluminum to these markets.
This person informed that the US imposing a 25% tax on imported steel and aluminum will encourage countries exporting steel and aluminum to switch to other markets, including Vietnam. This increases competition, causing difficulties for domestic steel and aluminum production enterprises.
The Ministry of Industry and Trade said that recently, world trade has emerged with three distinct trends: Un globilization; or segmentation in international trade causing the use of tariff tools 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 foreign market departments and the system of overseas Vietnamese Deals to closely monitor and grasp information on market developments, economic and political fluctuations in the region and the world affecting trade with Vietnam 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.
Recommend businesses to "not put eggs in one basket"
In an interview with Lao Dong Newspaper, Director General of the General Statistics Office (Ministry of Planning and Investment) - Ms. Nguyen Thi Huong recommended that domestic steel and aluminum export and production enterprises should soon acknowledge and estimate the difficulties from increasing steel and aluminum import taxes to 25% of the US. Therefore, it is recommended that the State issue support policies to facilitate production and export activities. Follow the market and implement solutions to optimize production costs, reduce costs, increase profits, and diversify export markets, implement the strategy of "not putting eggs in one basket" to avoid possible risks from the import market.
