Hòa Phát workers loading products on a boat for export. — Photo hoaphat.com.vn

HÀ NỘI — The market capitalisation of several listed Vietnamese steel companies witnessed a significant decline in a single trading session on February 10 due to the impact of US President Trump's tariff decisions. 

The swift imposition of a 25 per cent import tariff on all aluminium and steel into the US has rattled investor confidence, leading to a sharp downturn in the shares of domestic steel-producing companies.

As a result, in the opening session of the week, six major steel companies posted losses of nearly VNĐ9.2 trillion (US$360.2 million) in market capitalisation. 

Of these, Hòa Phát Group saw the biggest loss of nearly VNĐ8 trillion of its market cap on February 10. It was followed by Hoa Sen Group with a loss of VNĐ496.8 billion. 

Hòa Phát Group's shares rebounded by 2.8 per cent on Tuesday, while Hoa Sen extended its downtrend. 

Trump has imposed a 25 per cent tariff on steel and a 10 per cent tariff on aluminium.

While certain trading partners like Canada, Mexico and Brazil have been exempted from the tariffs, with additional exemptions extended to the UK, Japan and the European Union later on, investor concerns have spurred a sensitive market environment. 

Since Trump's return to the White House, trade tensions have once again flared up, with tariffs becoming a focal point in global trade discussions. 

Despite steel and aluminium not being among Việt Nam's top ten exports to the US, the market's rapid reaction to the US president's announcements demonstrates the financial market's sensitivity and its impact on the economy. 

AFA Capital CEO Nguyễn Minh Tuấn views Trump's second-term tariff policy as one of the key risks in 2025.

In the most probable scenario, AFA Capital believes that Việt Nam's export prospects remain positive due to the tariff differentials with competitive export rivals. 

Việt Nam is also expected to attract trade shifts, not involving imports from China for export to the US. 

However, in a more negative scenario, the country's exports could be adversely affected by high tariffs and reduced overall demand due to Trump's trade war. — VNS