US Section 232 tariffs already apply to Vietnamese steel and will not be expanded, Hoa Phat CEO Nguyen Viet Thang has told Financial Street as reported by The Investor.
Key points:
- Thang noted that the new U.S. reciprocal tariff measures do not target countries like Vietnam already covered by Section 232.
- He warned, however, that broader tariff actions could weaken global demand and indirectly affect Vietnam’s steel sector.
- He also said he believed that exchange rate pressures from tariff-driven uncertainty are being managed effectively by the State Bank of Vietnam citing a relatively stable exchange rate.
Vietnam’s steel exports may escape direct tariff hikes, but the sector remains exposed to global trade tensions—making market diversification and currency stability critical to resilience. That said, the challenges facing Vietnam’s steel industry go well beyond the recently announced “reciprocal” tariffs. Dumping of cheap steel on the local market in particular has put a strain on local steel firms which have been accused of dumping their own steel on markets outside of Vietnam in what looks to be somewhat of a domino effect.