The US Department Of Commerce has imposed a tariff of up to 456 percent on steel products that are imported from Vietnam, which are manufactured using materials from South Korea and Taiwan. These steel products from South Korea or Taiwan are shipped to Vietnam for minor processing before being exported to US.
Vietnam has benefited from the US-China trade war as companies are shifting production to the country and rerouting goods to Vietnam to avoid tariffs. In fact, Vietnam exports to US has increased over 30 percent in the first five months of 2019 and US is the largest export market for Vietnam.
In light of this, Vietnam’s foreign ministry has urged Vietnamese manufacturers to use domestically sourced materials or materials manufactured in countries where no tariffs are imposed.
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