What prospects does the US 25% duty present for Vietnam's steel industry?
Steel NewsDate: 21-02-2025 by: Nhu Quynh
The world steel market has always been one of the most competitive markets. With the strong development of the steel industry in many countries, the US recently decided to impose a 25% duty on imported steel, a move that could open up great opportunities for Vietnam steel enterprises.
To learn more about the prospects that the Vietnam steel industry can take advantage of in the future, read the article below from MRS Steel.
A wave of US duties is affecting the global steel market
The effects of US tariffs on the global steel industry
The US recently levied a 25% duty on steel imports. This choice was taken in order to shield the homegrown steel industry from intense competition from low-cost steel suppliers. This policy not only affects countries with developed steel industries but also affects the global steel industry.
The imposition of tariffs will make steel more expensive, reducing competitiveness in the US market. This will lead to some steel importers looking for more cost-effective sources, which could alter the global supply chain.
US tariffs will make steel more expensive
What opportunities for Vietnam's steel industry?
As the US imposes a 25% duty on imported steel products, Vietnam's steel industry can take advantage of some great opportunities to expand its market and increase exports.
Growth in exports to the US market: Vietnam is one of the leading steel-producing countries with low production costs, enabling Vietnam steel products to have more competitive prices than competitors. This is a key factor that helps Vietnam steel enterprises compete directly with other countries in exporting to the US.
Promote technological innovation and product quality: The US decision to impose high tariffs may force steel exporters from other countries to seek new markets. Vietnam steel can take advantage of this opportunity to increase exports not only to the US but also to other countries affected by US tariffs, thereby contributing to expanding its global market share.
Encourage investment and development of the domestic steel industry: To meet the strict requirements of the US market, Vietnam steel enterprises need to improve product quality and improve production processes. This will not only help satisfy the needs of customers in the US but also open up opportunities for Vietnam steel to reach other international markets, especially those with high standards.
Vietnam can take advantage of available opportunities to boost exports to the US
Competitive advantages of Vietnam's steel industry
Competitive production costs: Vietnam's labor costs are still far lower than those of steel-producing giants like China, Japan, and South Korea. This gives domestic businesses a competitive price edge in the global market by enabling them to drastically cut production costs.
Convenient geographical location: Vietnam's advantageous geographic location next to major markets like China, Asean, India, and Japan helps companies export steel at a lower cost of transportation. Furthermore, importing raw materials and exporting goods to other countries is made easier by the contemporary and growing seaport network.
Free Trade Agreement: Due to its membership in numerous significant trade agreements, including the RCEP, CPTPP, EVFTA,... Vietnam has advantageous conditions for the export of steel. Domestic businesses benefit from preferential duty rates as a result of these accords, which makes Vietnam steel products more competitive when compared to nations without such advantages.
Product quality is increasingly improving: Significant technological advancements have helped Vietnam steel industry meet international standards and increase product quality. Numerous domestic businesses have been successful in producing high-quality steel that is suitable for export to markets with significant demand, like the US and Europe.
Products are increasingly improving in quality
Challenges and strategies to seize opportunities
Vietnam steel mills have numerous obstacles while trying to break into the US market, despite the abundance of prospects. Both adherence to import laws and extremely high standards of quality are necessary in this industry. Vietnam steel mills must thus concentrate on raising their level of competitiveness and increasing the quality of their products. Additionally, companies must thoroughly research US import and tariff laws to minimize needless risks.
The opportunities and difficulties that the Vietnam steel industry faces when the US levies a 25% duty on imported steel products have been briefly discussed in the article on MRS Steel. Please get in touch with us if you need to buy premium steel products. MRS Group is always available to help and guide you in selecting the product that best meets your needs.
Write a comment