The US imposes a 40-88% tax on Vietnamese galvanized steel, which "big guys" on the floor are on the list?

Vietnam's steel industry faces many difficulties from tariff barriers - Photo: AI/BINH KHÁNH

As reported by Tuoi Tre Online , the US Department of Commerce (DOC) has announced a preliminary decision in the anti-dumping investigation into galvanized steel products imported from many countries, including Vietnam.

After this preliminary decision, the US side will make a final decision in August 2025, before the US International Trade Commission (ITC) makes a final conclusion in October 2025.

Which companies are listed on the stock exchange?

According to the preliminary tax decision from the US, many steel companies on the stock exchange are on the tax list.

US imposes preliminary anti-dumping tax on Vietnamese steel

Of which, Hoa Sen Group (HSG) received a tax rate of 59%. Hoa Phat Steel Company Limited - a member of Hoa Phat Group (HPG), Nam Kim Steel (NKG) were both subject to a tax rate of 49.42%.

Ton Dong A (GDA) - another listed company - will receive a tax rate of 39.84%. Companies not specifically mentioned in the above decision will be subject to a tax rate of up to 88.12%.

According to the Vietnam Steel Association, by the end of 2024, the US will become Vietnam's third largest steel export partner with a proportion of about 13% (after ASEAN and the EU).

Vietnam's export volume to the US increased by 50% over the same period, reaching 1.7 million tons, of which the majority came from galvanized steel, CRC and HRC accounting for 60%.

MB Securities (MBS) analysts said that the growth in galvanized steel export output last year came from positive signals from the recovery of the US construction market.

According to MBS, of the total steel output exported to the US in 2024, HRC and galvanized steel account for 60% and these items are subject to a tax rate of 21 - 36%. Of which, construction steel products and HRC are subject to a tax rate of about 33 - 36%.

The tax increase could reduce the price competitiveness of Vietnamese steel, so it is likely that businesses will have to reduce selling prices in the US, MBS experts once assessed.

Does it affect stock price?

When the US imposed a 25% import tax on steel products in February this year, MBS assessed that Vietnam could be slightly affected because the US is currently the third largest export partner with main products being galvanized steel, HRC and CRC.

MBS data shows that businesses on the stock exchange with a high proportion of exports to the US such as GDA (16%), NKG (13%) and HSG (9%) may see a slight decrease in profit margins while output is not significantly affected.

However, with the new anti-dumping tax rate, businesses must calculate many other options to adapt. The specific impact depends on the proportion of exports to the US and many internal factors of each business.

Previously, in both trading sessions on April 3 and 4, when the entire market was under selling pressure from the news that the US would impose a 46% reciprocal tax, steel stocks were no exception.

NKG shares of Nam Kim Steel fell to the floor for two consecutive sessions. GDA of Tong Dong A suffered another adjustment session of nearly 8% after the floor-hit session.

Similarly, HPG of Hoa Phat or HSG of Hoa Sen both experienced a sell-off session that dropped to the floor and then the following session adjusted by a large margin (3-5%).

Analysts say steel manufacturing enterprises with large domestic market shares will have an advantage in maintaining revenue growth momentum in the coming time.

Besides, export enterprises also need to focus on expanding to new markets (areas that have not applied tariff barriers to Vietnamese steel) to maintain consumption output.

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BINH KHANH

Source: https://tuoitre.vn/my-ap-thue-40-88-doi-voi-thep-ma-viet-ong-lon-tren-san-nao-trong-danh-sach-20250405201320641.htm