Vietnam Holds Opportunities to Export Aluminum and Steel to US Market

Vietnam still has many opportunities to export aluminum and steel to the US market, as domestic production capacity in the US has yet to fully meet local demand, according to the Head of the Vietnam Trade Office in the US.
February 13, 2025 | 10:25
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Do Ngoc Hung, Commercial Counselor and Head of the Vietnam Trade Office in the US said that despite the additional 25% tariff imposed on imported steel and aluminum in the US, Vietnam still has ample opportunities to continue its exports. This is because US steel and aluminum manufacturers are currently unable to fully meet domestic consumption needs.

Vietnam still has ample opportunities to
Illustrative photo: Vietnam still has ample opportunities to export aluminum and steel to the US market. (Photo: VNA/VNS)

However, he noted that Vietnamese exporters might experience a decline in profit margins in the near future.

The Commercial Counselor explained that Vietnam’s aluminum and steel products remain subject to tariffs of 10% and 25%, respectively, under Section 232, which the US has applied to most countries since 2018.

The additional 25% tariff on imported aluminum and steel imposed by the US is forecast to impact exporting countries in the coming period negatively. Moreover, since 2018, other markets have replaced China as key aluminum and steel exporters to the US, including Canada, Mexico, the European Union, Japan, South Korea, and Brazil.

The increased tariffs on imported aluminum and steel are also expected to affect global supply chains. Countries facing difficulties in exporting to the US will likely redirect their products to alternative markets, including Vietnam.

Additionally, high tariffs on exports could push steel companies to focus on domestic markets, prompting other countries to strengthen protective measures for their steel and aluminum industries, as seen in 2018. This shift may pose challenges for steel-exporting nations like Vietnam in markets outside the US.

Many importing nations recognize that Vietnamese goods have a competitive edge in pricing and quality. In the US market, Vietnam’s exports are considered beneficial to the US economy, helping to reduce inflation and fostering bilateral trade.

“Therefore, domestic businesses need to assess the situation carefully to develop appropriate business strategies, expanding exports to markets that have free trade agreements (FTAs) with Vietnam to avoid over-reliance on a single market,” said Do Ngoc Hung.

He also advised Vietnamese enterprises to comply with US regulations on origin certification and actively participate in trade defense investigations conducted by US authorities. Additionally, businesses should closely collaborate with the Vietnam Trade Remedies Authority (under the Ministry of Industry and Trade) and Vietnamese diplomatic representatives abroad to monitor developments and respond accordingly.

According to US Customs data, Vietnam’s steel and steel product exports to the US soared to around US $983 million 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 US $479 million in 2024, up 9.5% from the previous year. These exports were mostly for kitchen cabinets, aluminum tables and interior décor (HS 7615.10), aluminum alloys (HS 7604.21), and aluminum bars and wires (HS 7604.29).

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