The United States Imposed 456% Tariffs On Vietnam And Its Influence On China's Textile Industry.

According to the Taiwan Economic Daily website recently, the US Department of Commerce confirmed that some steel products in Vietnam were first produced in Korea and Taiwan, and then sold to Vietnam for small processing, then exported to the United States with corrosion resistant steel and cold rolled steel. According to the report, the US Department of Commerce will instruct the US Customs to levy a cash deposit of up to 456.23% for Vietnam's two steel products, which are produced in South Korea or Taiwan, China. The deposit applies to goods not yet settled since August 2, 2018.

When the news came out, many people were worried about whether the United States would launch a trade war with Vietnam. In fact, the United States has imposed tariffs on countries such as China, the European Union, Canada, Mexico and Turkey. Then, if the United States starts a trade war, how much will the United States impose tariffs on Vietnamese textiles and how much will it affect China's textile and garment enterprises?

Lost order return

Since the Sino US trade war, Vietnam, China, Taiwan, Bangladesh and South Korea have been the four winners of this war. US imports of goods from Vietnam, Taiwan, Bangladesh and Korea were two digit growth over the same period last year. For the 1-5 months of 2019, the US imports from China decreased by 12% compared with the same period in 2018. By contrast, imports from Vietnam, China, Taiwan, Bangladesh and South Korea increased by 36%, 23%, 14% and 12% over the same period in 2018.

Since the Sino US trade negotiations, Vietnam's textile enterprises have been increasing. Low cost of raw materials and low labor costs have attracted many international apparel traders. They have transferred orders from China to Vietnam, and Chinese textile enterprises have invested in Vietnam to build factories under the pressure of environmental protection and tariffs. If the United States impose tariffs on Vietnam's textile industry, Vietnamese textiles will no longer have the price advantage. At the same time, China will be far superior to Vietnam in terms of textile technology and the output and stability of workers.

Grey cloth overcapacity is expected to ease

Just half a month ago in July, just half a month ago, the PTA disk has gone out of the trend of "mountaineering" and "diving", which made it difficult for the weaving enterprises in the middle link to be hit. After all, grey cloth inventory is at a high level, the price is difficult to pull up, high cost superimposed on high inventory, making weaving factories operating pressure is quite large, many regular production of conventional products manufacturers lose one day a day! The current situation of textile enterprises is mainly due to soaring raw materials, overcapacity and weak demand. If the United States impose tariffs on Vietnam's textile industry, the return of orders will ease the problem of overcapacity of grey cloth in China.

Whether or not the United States will impose tariffs on Vietnam, we still do not know whether the textile industry is concerned by all textile people. Everything is a double-edged sword. If it is added, without mentioning the great impact on Vietnam's economy, from the standpoint of China, the good thing is that it will promote the development of China's textile industry and promote healthy competition in the textile market. At the same time, it will undoubtedly be a major blow for Chinese enterprises investing in factories in Vietnam.