In light of recent global market fluctuations, Vietnamese exporters are being urged to work closely with the Ministry of Industry and Trade (MOIT) and Vietnam’s overseas trade missions to stay updated and develop timely, effective response strategies.
U.S. Imposes 25% Tariff on Steel and Aluminum Imports
Table of Contents
On the morning of February 11, 2025 (Vietnam time), U.S. President Donald Trump officially signed an executive order imposing a 25% tariff on all imported steel and aluminum, without any exemptions or exclusions.
The new tariff will take effect on March 4, 2025. President Trump stated that the measure aims to boost domestic production and bring manufacturing jobs back to the U.S., while warning that tariff rates could be raised even higher if necessary.
According to U.S. trade statistics, Canada and Mexico are currently the largest steel exporters to the U.S., followed by Brazil and South Korea.
As for Vietnam, U.S. Customs data shows that in 2024, Vietnam exported approximately USD 983 million worth of steel and steel products (up nearly 159% year-on-year) and USD 479 million worth of aluminum and aluminum products (up 9.5% from 2023).
Vietnam’s Steel and Aluminum Already Subject to Section 232 Duties
Vietnamese steel and aluminum have been subject to 25% and 10% tariffs respectively under Section 232 of U.S. trade law since 2018—rates now extended to nearly all countries.
Furthermore, both sectors remain frequent targets of U.S. trade-remedy investigations.
-
The U.S. has initiated over 34 trade-defense cases against Vietnamese steel (accounting for more than 50% of all U.S. investigations involving Vietnam).
-
Aluminum has faced two major anti-dumping cases.
In October 2024, the U.S. Department of Commerce (DOC) imposed an anti-dumping duty of 41.84% on Vietnamese extruded aluminum, with specific firms facing duties as high as 160.2%.
However, on October 30, 2024, the U.S. International Trade Commission (ITC) ruled that U.S. industry was not materially injured or threatened by these imports—partially easing immediate pressure on exporters.
Industry Leaders: Tariff Impact Will Pressure Margins but Not Halt Exports
According to Mr. Đỗ Ngọc Hưng, Commercial Counselor and Head of the Vietnam Trade Office in the U.S., Vietnamese steel still has export potential because U.S. producers cannot immediately meet domestic demand. However, profit margins will shrink.
Ms. Lý Thị Ngân, Chief of the Vietnam Aluminum Profile Association Office, emphasized that aluminum and steel are essential to every modern economy. In 2024, Vietnam’s aluminum exports to the U.S. reached USD 479 million, up 9.5% year-on-year.
Since 2018, aluminum has been taxed at 10%, but under the new policy this rate will rise to 25%, eliminating previous exemptions even for U.S. allies.
The announcement has already triggered a rise in global and domestic aluminum prices, reflecting growing supply uncertainty.
Aluminum Exporters Face Significant Exposure
The U.S. currently accounts for around 60% of Vietnam’s total aluminum export turnover, causing deep concern among domestic and foreign-invested producers.
Ms. Ngân noted that the most affected group will be foreign-invested manufacturers, who dominate Vietnam’s aluminum exports. Their reduced output could later increase oversupply in the domestic market, which has already suffered from prolonged stagnation.
Anticipating such risks, the aluminum industry has been preparing since the beginning of President Trump’s term for higher tariff barriers, rising input costs, and logistics pressures, all of which will erode profitability.
Strategic Recommendations for Vietnamese Exporters
To mitigate the impact, the Vietnam Aluminum Association has:
-
Conducted market risk analyses to help member firms prepare strategic responses.
-
Encouraged market diversification to reduce dependence on the U.S.
-
Promoted R&D of higher-value aluminum products to boost competitiveness and added value.
In the near term, Vietnamese exporters are negotiating with U.S. importers to share tariff burdens for existing contracts and to discuss pricing adjustments for upcoming shipments.
Vietnam Trade Office Guidance
Mr. Đỗ Ngọc Hưng advised exporters to:
-
Closely monitor U.S. policy developments and adjust business strategies accordingly.
-
Expand to FTA partner markets (e.g., CPTPP and EVFTA countries) to diversify risk.
-
Strictly comply with U.S. origin rules and fully participate in any trade-defense proceedings to protect their interests.
He emphasized that exporters must maintain close coordination with MOIT and Vietnam’s diplomatic missions abroad to ensure timely updates and appropriate, proactive responses.