Steel segment waits to see what Trump will do

President Donald Trump has signed an executive order seeking a comprehensive review of the massive US trade deficit totalling more than US$500 billion per annum with 16 countries including China and Vietnam.
steel segment waits to see what trump will do

Trump has also signed a second order that seeks to strictly enforce anti-dumping laws and collect past due duties that were levied on foreign businesses but never paid over to the US government.

However, he is now considering signing a third order targeting countries that dump steel on American shores, specifically China— but there is much concern that the directive could spill over and impact Vietnam.

Here’s what it is all about

The capacity of Chinese steelmakers now exceeds that of the US, EU, Japan and Russia combined and has accounted for more than 75% of the growth in the global industry over the past five years, according to experts.

China cannot possibly use all the steel it produces domestically so it regularly dumps it into other markets, principally the US and EU—which has resulted in substantial closings of steel plants and loss of jobs in these markets.

The United Steelworkers union in the US has estimated the loss of jobs caused by Chinese dumping to be more than 14,500 between January 2015 and June 2016 as a result of dozens of plant closings.

Dumping is when a foreign manufacturer exports a product to another country at a price below what it charges in its own domestic market. Quite often, a dumped product is priced below what it costs to produce.

Dumping such as that from China is alleged to be part of a long-term strategy to capture foreign market share, the idea being that the super low price will put steelmakers in other countries out of business and allow the Chinese government-backed foreign companies to dominate the industry.

Meanwhile the Chinese government, it is supposed, is subsidizing the losses incurred by its domestic steelmakers because the segment creates jobs, which in turn benefits the economy in many other ways that results in net overall improvement in the gross national product.

There is also substantial evidence that some Chinese steel companies have sent products in the past through Vietnam as part of a scam to avoid US anti-dumping duties and that this conduct might be continuing.

Trump’s executive order

What Trump administration staff are telling the media on background is that the proposed executive order would launch a massive investigation by US authorities to see if trade deficits for specifically – steel and aluminium – are the result of dumping.

What could Trump do to stop dumping

Trump has the power to unilaterally levy a tariff against imports from any country, which literally means he can impose import duties on his own initiative without the approval of the US Congress.

He could also follow through on his campaign pledge to instruct the US Trade Representative to bring cases against China and other countries to use "every lawful presidential power to remedy trade disputes."

No one knows for sure what Trump would do if he signs the executive order, but a likely course of action also includes an option to follow the lead of former US President Ronald Reagan and impose voluntary export restraints on steel such as those imposed by the US in 1984.

Dumping in the US and markets around the globe such as Vietnam by Chinese steelmakers is a major problem — and it is a problem that will not be resolved on its own. US President Trump is going to have to act.

The Vietnam steel segment is waiting to see what the US President will do.

Source: VOV

Related News

Vietnam-Cambodia: Looking back on journey of cooperation

Vietnam-Cambodia: Looking back on journey of cooperation

VCN – The bilateral meeting between the General Department of Vietnam Customs (GDVC) and the General Department of Customs and Excise of Cambodia (GDCEC) was held by the GDVC on December 9.
Vietnam-China e-commerce: A perspective from Lang Son border

Vietnam-China e-commerce: A perspective from Lang Son border

VCN - Cross-border e-commerce is currently a hot topic among e-commerce businesses, particularly those actively developing digital platforms and cross-border electronic payment infrastructures through border gates in Lang Son province.
Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

VCN - Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.
Imports of textile and footwear materials soar amid robust industry growth

Imports of textile and footwear materials soar amid robust industry growth

VCN - Vietnam's appetite for raw materials in the textile and footwear sectors surged to new heights, with China firmly holding its position as the dominant supplier.

Latest News

Vietnamese fisheries sector navigating headwinds in US market

Vietnamese fisheries sector navigating headwinds in US market

Vietnam's fisheries exporters stand at a critical juncture in the US market, facing a complex landscape of potential opportunities and significant challenges in the coming years.
CPTPP, UKVFTA to boost UK - Vietnam trade relations

CPTPP, UKVFTA to boost UK - Vietnam trade relations

Together with the UK - Vietnam Free Trade Agreement (UKVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will create new opportunities for companies and consumers in the UK and Vietnam, affirmed British Ambassador to Vietnam Iain Frew.
Hai Phong creates breakthroughs in FDI attraction

Hai Phong creates breakthroughs in FDI attraction

The northern port city of Hai Phong has emerged as a leader in foreign direct investment (FDI) attraction, showcasing a robust portfolio of environmentally friendly projects.
Incentive mechanisms needed for semiconductor industry: PM

Incentive mechanisms needed for semiconductor industry: PM

Prime Minister Pham Minh Chinh, Head of the National Steering Committee for Semiconductor Industry Development, urged the development of incentive mechanisms and policies to promote the development of the semiconductor industry, while chairing the first meeting of the committee in Hanoi on December 14 morning.

More News

Logistics service businesses transform digitally to reduce costs

Logistics service businesses transform digitally to reduce costs

VCN - 4.0 technology application has enabled businesses to lower logistics costs by an average of 23% compared to traditional methods and shorten the order processing time by an average of 35% thanks to automation.
Necessary conditions for operating a "natural flavor" business

Necessary conditions for operating a "natural flavor" business

VCN - Businesses following the sustainable development trend have shown high adaptability and resilience to negative changes from the outside. Preparing to enter 2025, "profit-oriented" business will be gradually replaced by "natural flavor" business.
Garment industry urged to gain self-sufficiency in raw materials for UK expansion

Garment industry urged to gain self-sufficiency in raw materials for UK expansion

Vietnam’s garment and textile industry needs to develop a closed-loop supply chain with a focus on obtaining self-sufficiency in raw materials in order to meet the rules of origin under the UK – Vietnam Free Trade Agreement (UKVFTA) for expanding exports to this market.
Shrimp exports expected to hit 4 billion USD in 2024

Shrimp exports expected to hit 4 billion USD in 2024

With double-digit growth in key markets, Vietnam's shrimp exports are projected to rake in 4 billion USD in 2024, according to insiders.
B2C e-commerce market in bloom

B2C e-commerce market in bloom

Vietnam’s B2C e-commerce market in 2024 has experienced growth of 18-20% in the first ten months of 2024.
Promoting Vietnam - Poland trade through new maritime routes

Promoting Vietnam - Poland trade through new maritime routes

VCN - Vietnam-Poland trade and investment cooperation is expected to develop strongly in the coming time thanks to new maritime connections among the two countries that are about to be launched.
Total import-export turnover reaches US$715.55 billion in 11 months

Total import-export turnover reaches US$715.55 billion in 11 months

VCN - In November, total import-export turnover amounted to US$66.4 billion, down 4.1% compared to the previous month but up 9.0% compared to the same period last year.
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Read More

Your care

Latest Most read
Vietnamese fisheries sector navigating headwinds in US market

Vietnamese fisheries sector navigating headwinds in US market

Vietnam's fisheries exporters stand at a critical juncture in the US market, facing a complex landscape of potential opportunities and significant challenges in the coming years.
CPTPP, UKVFTA to boost UK - Vietnam trade relations

CPTPP, UKVFTA to boost UK - Vietnam trade relations

Together with the UK - Vietnam Free Trade Agreement (UKVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will create new opportunities for companies and consumers in the UK and Vietnam, affirmed British Ambassador to Vietnam Iain Frew.
Hai Phong creates breakthroughs in FDI attraction

Hai Phong creates breakthroughs in FDI attraction

The northern port city of Hai Phong has emerged as a leader in foreign direct investment (FDI) attraction, showcasing a robust portfolio of environmentally friendly projects.
Incentive mechanisms needed for semiconductor industry: PM

Incentive mechanisms needed for semiconductor industry: PM

Prime Minister Pham Minh Chinh, Head of the National Steering Committee for Semiconductor Industry Development, urged the development of incentive mechanisms and policies to promote the development of the semiconductor industry, while chairing the first meeting of the committee in Hanoi on December 14 morning.
Logistics service businesses transform digitally to reduce costs

Logistics service businesses transform digitally to reduce costs

4.0 technology application has enabled businesses to lower logistics costs by an average of 23% compared to traditional methods and shorten the order processing time by an average of 35% thanks to automation.
Mobile Version