Hanoi (VNA) - Despite the US’s imposition of 25% tariff on imported steel and aluminum, Vietnam still holds promising opportunities to continue its exports to the US market as US producers have yet to fully meet domestic demand, said Commercial Counsellor Do Ngoc Hung, Head of the Vietnam Trade Office in the US.
However, the new tariffs could squeeze profit margins for Vietnamese exporters, making it crucial for businesses to adapt swiftly, Hung said.
On the bright side, Vietnam's steel and aluminum products are renowned for their competitive prices and high quality, offering significant value to the US economy by helping curb inflation and fostering stronger bilateral trade ties, a point echoed by many importing nations.
Domestic firms should come up with appropriate business strategies, diversify their markets, and leverage free trade agreements (FTAs) with other countries to avoid over-reliance on the US as a single destination, Hung said, adding that equally important is ensuring strict compliance with the US's regulations on product origin and being proactive in preparing for trade defence investigations.
They should also strengthen collaboration with the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, as well as Vietnam’s diplomatic representatives abroad to monitor the situation and respond effectively.
According to the official, Vietnam's steel and aluminum exports to the US remain subject to 25% and 10% tariffs, respectively, which has been in effect since 2018 for most countries.
The new tariffs are predicted to disrupt global supply chains, prompting countries facing export hurdles to redirect shipments to alternative markets, including Vietnam.
In fact, according to US Customs data, Vietnam’s steel and steel product exports to the US soared to around 983 million USD in 2024, up nearly 159% year on year. Key exports included galvanized steel (HS 7210.49), aluminum-zinc coated steel (HS 7210.61), plastic-coated steel (HS 7210.70), stainless steel (HS 7219.34), and alloy steel (HS 7209.16).
Similarly, Vietnam’s aluminum and aluminum product exports to the US reached around 479 million USD in 2024, up 9.5% from the previous year, mostly kitchen cabinets, aluminum tables and interior décor (HS 7615.10), aluminum alloys (HS 7604.21), and aluminum bars and wires (HS 7604.29)./.
