On May 30, at the Irvin Works plant of US Steel in West Mifflin (Pennsylvania), Mr. Trump said: "We will raise the import tax on steel into the US from 25% to 50%. This will help protect the steel industry even better." He further explained: "The 25% tax rate still has loopholes for them to bypass. But when it is raised to 50%, they will no longer have the opportunity to do that."
Targeting steel, aluminum and autos
Since returning to the White House in January, President Trump has imposed sweeping tariffs on both allies and trading partners. He has also targeted specific industry sectors including steel, aluminum and autos.
The US began imposing new tariffs on all aluminum and steel imported into the country on March 12. According to the decree signed by Mr. Trump on February 10, these products will be subject to a 25% tax, with no exceptions or exemptions. The US economy today is no longer as focused on the manufacturing sector as it was in the past, but it still consumes tens of millions of tons of steel every year. Therefore, the world's number one superpower still regularly imports steel every year.
President Donald Trump announced that he will increase tariffs on steel and aluminum from 25% to 50%, effective June 4 (Photo: Reuters).
Imported steel is used in industries such as autos, aerospace, oil and construction. Tariffs would increase production costs in these industries by making imported metals more expensive. At the same time, US steelmakers would likely raise their prices as competition from cheaper imports eases, according to CNN.
According to the American Iron and Steel Institute (AISI), Canada will be the largest supplier of steel to the US in 2024. Canada exported 5.95 million tons of steel to the US, down 5% from the previous year. It was followed by Brazil, Mexico and South Korea.
In the market, Chinese steel prices fluctuated unpredictably as the market braced for new fluctuations due to trade uncertainties. At the end of the trading session on May 30, the price of June rebar on the Shanghai Futures Exchange fell 0.78% to 2,925 yuan/ton. Compared to the end of last week, Shanghai steel prices fell 3.8%.
Chinese steel prices fluctuate unpredictably as the market braces for new fluctuations due to trade uncertainty (Photo: Reuters).
According to Reuters, the production activities of Chinese steel mills are likely to continue to shrink, showing that trade tensions with major export markets are affecting the psychology of manufacturers. Experts said that President Trump's decision comes in the context of the US President signaling that he will clear the way for the controversial merger between US Steel and Nippon Steel (Japan).
How is domestic steel price going?
In the domestic market, steel prices have recently recorded mixed fluctuations. Specifically, according to SteelOnline.vn, at the end of May, the price of Hoa Phat 's CB240 rolled steel decreased by VND140,000/ton to VND13.65 million/ton, while D10 CB300 rebar increased by VND50,000/ton to VND13.79 million/ton.
Similarly, Viet Duc Steel reduced the price of CB240 rolled steel by VND250,000/ton to VND13.35 million/ton, while D10 CB300 steel remained at VND13.35 million/ton. On the contrary, Thai Nguyen Steel increased the price of D10 CB300 steel by VND310,000/ton to VND14.08 million/ton, while CB240 rolled steel remained at VND13.97 million/ton.
According to data from the Vietnam Steel Association (VSA), in the first quarter, the quantity and export value of steel products (HRC, galvanized steel, steel pipes...) fluctuated in opposite directions due to difficulties from the export market with protectionist trade policies.
In the first two months of the year, Vietnam exported more than 1.745 million tons of steel, down 18.83% year-on-year. Export value reached 1.143 billion USD, down 27.03% year-on-year.
In contrast to the downward trend in the export market, the domestic steel market in the first quarter recorded signs of improvement. The total volume of finished steel products sold in the market reached 7.501 million tons, up 12.2% over the same period last year. Of which, the construction steel segment had an output of more than 3 million tons (up 10.6%) and sales volume reached 3.07 million tons (up 19.9%).
As of the end of February, the US was still the third largest market in Vietnam's total steel exports (accounting for 13%), after the EU (19%) and ASEAN (35%). Other markets such as India accounted for 3%, Taiwan (China) 5%, Brazil 2%...
Previously, in the past year, Vietnam exported about 12.62 million tons of steel, up 13.47% over the same period in 2023. The export value reached 9.08 billion USD, up 8.78% over the same period in 2023. Of which, the amount of steel exported to the US last year reached nearly 1.7 million tons, worth 1.3 billion USD. The proportion of steel exports to the US from Vietnam increased to 13%, up more than 3% compared to 2023.
According to Mr. Do Ngoc Hung - Trade Counselor, Head of the Vietnam Trade Office (Ministry of Industry and Trade) in the US, any adjustment in tax policy will affect the export market. Therefore, Vietnamese enterprises need to assess the situation to have appropriate business strategies, expand exports to markets that have FTAs with Vietnam, and avoid dependence on one market.
Comply with US regulations on origin and always be ready to fully participate in the explanation process of US investigation agencies on trade defense cases. Closely coordinate with the Ministry of Industry and Trade (Department of Trade Defense) and diplomatic missions abroad to closely monitor the situation to have appropriate responses.
Source: https://dantri.com.vn/kinh-doanh/thep-nhom-hien-ra-sao-20250601084345814.htm
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