How do Trump’s 25% tariffs on aluminum, steel imports impact Vietnam?
How do Trump’s 25% tariffs on aluminum, steel imports impact Vietnam?
Though U.S. President Donald Trump has raised tariffs on steel and aluminum imports to the U.S. to a flat 25 percent, Vietnam’s aluminum, steel imports will still hold multiple opportunities as the U.S. manufacturing capacity cannot immediately meet its demands, Do Ngoc Hung, commercial counselor and head of the Vietnam Trade Office in the U.S., told Tuoi Tre (Youth) newspaper in a recent interview.
Vietnamese steel enterprises may face challenges as the U.S. has raised tariffs on steel and aluminum imports to the U.S. to a flat 25 percent. Photo: A.N. / Tuoi Tre |
However, the tariff imposition is expected to affect the country’s steel and aluminum production and export in the coming period, Hung noted.
Profit margins of enterprises will fall. Difficulties in exporting to the U.S. will impact supply chains as countries seek alternative markets.
Many steel companies are returning to their domestic markets, leading countries to ramp up protectionist measures, which will also affect steel-exporting nations like Vietnam.
The tariffs are also expected to contribute to inflation in the U.S., as steel and aluminum are essential commodities with high demand.
Hung believed that Vietnam’s competitive pricing and good product quality will support the U.S. economy by helping to reduce inflation and improve trade relations between the two countries.
According to U.S. customs data, Vietnam exported some US$983 million worth of steel and steel products stateside in 2024, surging nearly 159 percent over 2023. Aluminum exports amounted to $479 million, a 9.5-percent increase.
However, some large steel producers in Vietnam, such as Hoa Phat Group, have stopped exporting steel to the U.S. and expanded exports to more than 10 other markets since Washington imposed trade defense measures.
Hung added that the imposition of the 25-percent tariffs on steel and aluminum imports will have negative effects on countries shippping these goods to the U.S..
Since 2018, many countries and territories, including Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil have replaced China as exporters of these products to the U.S..
As a result, steel imports now meet 12-15 percent of Washington’s needs, while aluminum imports meet 40-45 percent.
The Vietnam Trade Office in the U.S. advised Vietnamese enterprises to assess the situation and devise appropriate business strategies, expanding exports to markets with free trade agreements with Vietnam to avoid dependence on a single market.
Local enterprises should also comply with U.S. origin regulations and be prepared to fully engage in U.S. trade defense investigations.
Hung also recommended that companies collaborate closely with the Ministry of Industry and Trade and diplomatic representatives abroad to monitor the situation and respond appropriately.
Trump signed proclamations raising U.S. tariffs on steel and aluminum imports on Monday to 25 percent "without exceptions or exemptions" and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals.
A White House official confirmed the measures would take effect on March 4, Reuters reported.
