The US has increased its tariffs on cement imported from Vietnam to 20%, effective Aug. 1, a move which is expected to significantly alter trade flows as the Southeast Asian country is the second-largest supplier to the US, just behind Turkey, according to industry participants and a White House statement July 31.

The jump in tariffs from the previous 10% could reshape the cost structure of US cement imports. While importers had absorbed the earlier rate, the new 20% level is expected to be passed downstream to end-users, participants said.

“If it were just 10%, Vietnam could still absorb the cost and stay competitive,” said an Asia-based trader. “But at 20%, it’s no longer sustainable, and they would have to pass that cost on, and prices will likely rise.”

Still, selling into the US remains a priority for Vietnamese exporters.

“Vietnam would still have to sell to the US as it is a lucrative market and if they do not sell, their volumes could not be absorbed easily by any other markets,” another Asia-based trader said.

Turkey, the top cement exporter to the US, currently faces a 15% import duty, but it is yet to be confirmed if cement is included under this rate.

Platts, part of S&P Global Commodity Insights, assessed CEMDEX Turkey at $55/mt and cement clinker FOB Turkey at $48/mt July 31, both unchanged week over week.
Source: Reuters