Exporting to North America: Trade Defense Is No Longer ‘Luck-Based Avoidance’

Overview: Trade Defense Is Choking SME Cash Flow

Exporting to North America — lucrative market, on-time payments, high margins. Sounds beautiful. But the reality comes with a risk that 68% of Vietnamese SMEs have never seriously prepared for: trade defense.

In June 2026, Vietnam’s Ministry of Industry and Trade once again called on businesses to “proactively respond.” This phrase is so familiar that many think it’s just general advice. Wrong. This is a real warning backed by hard numbers:

Since 2022, the US has initiated 14 anti-dumping (AD) and countervailing duty (CVD) cases against Vietnamese goods. Canada added 6 more. Total of 20 cases in less than 4 years. Each case lasts an average of 12-18 months, with legal costs ranging from USD 150,000 to 500,000. If you lose, duties can reach 400% — meaning game over.

Industries Under Fire

Steel, wood, seafood, textiles, footwear — all have been or are currently in the crosshairs. Most recently, color-coated steel from Vietnam faced anti-dumping duties of 258.29%. Shrimp exports to the US have faced duties ranging from 4% to 25% depending on the company.

The common thread in these cases isn’t poor product quality. It’s lack of transparency in the value chain, insufficient documentation proving origin, and lack of legal capacity to defend themselves.

Why SMEs Are the Easiest Targets

Because SMEs typically operate as OEMs, don’t control final pricing, don’t maintain complete records, and lack dedicated legal departments. When investigated, many businesses only realize they must prove they’re not dumping — the plaintiff doesn’t have to prove they are.

The principle in trade defense: burden of proof lies with the respondent. Can’t prove your case? The highest duty rate will be applied to you under the “adverse facts available” (AFA) rule.

Ho Alva’s Insight

I’ve worked with over 40 SMEs exporting to the US through Alibaba, Amazon, and various B2B channels. What I see most clearly: trade defense is no longer about “hoping you don’t get hit.” It has become a fixed operating cost — like insurance, like auditing.

But 7 out of 10 businesses I meet still think “we’re too small, nobody will notice.” Wrong. Being small makes you more likely to be grouped into “all others” with the highest duty rate. Conversely, if you proactively participate in investigations, you can be assessed individually — and receive much lower duties.

Opportunities for SMEs

1. Companies with clean documentation will survive and capture market share

After each investigation wave, the market self-cleans. Non-compliant companies get pushed out, and their market share goes to those who remain. I saw this clearly in the shrimp case: many small factories went bankrupt, but 3-4 large companies with ERP systems and full traceability doubled their orders.

This is sustainable competitive advantage: compliance isn’t a cost, it’s a moat.

2. US buyers prioritize suppliers with defense systems in place

Since 2025, many major buyers on Alibaba.com and Amazon Business have required suppliers to provide certificates of origin, supply chain diagrams, and input material price lists before signing long-term contracts. Why? They don’t want supply disruption risk when suppliers get investigated.

If you prepare this documentation set in advance, you not only avoid risk but also unlock access to larger, long-term orders.

3. Industry associations are building “collective defense toolkits”

VASEP (shrimp), Vinatex (textiles), VFO (wood products) are rolling out collective legal support programs. Legal costs are shared, experience spreads quickly. If you’re an SME, joining an association is no longer “attending time-wasting meetings” — it’s a survival network.

Risk Warnings

1. Not responding to investigations = commercial suicide

When receiving a questionnaire from DOC (US Department of Commerce), many companies ignore it because they “don’t understand,” “don’t have lawyers,” or “fear the cost.” Result: maximum duties applied under AFA rules.

In reality, if you respond fully, even without hiring expensive lawyers, you can still be assessed individually with much lower duties. This isn’t optional — it’s mandatory.

2. Raw materials from China = fatal vulnerability

If your product derives over 60% of its value from Chinese materials, you’re vulnerable to being classified as “transshipment” (rerouting to avoid duties). This is the main reason Vietnamese steel got investigated.

Solution? Diversify sourcing, or shift to deeper manufacturing to increase domestic value-added ratio. If you can’t do that, at least maintain clear documentation proving each processing step.

3. Legal costs can’t be “figured out later”

USD 150,000-500,000 for an AD/CVD case — this number isn’t meant to scare you. It’s reality. If your company doesn’t reserve this fund from the start, when investigated you’ll have to take emergency loans, cut production, or abandon the market.

Some international lawyers accept phase-based work or fixed-fee models. Research in advance, don’t wait until you receive the summons.

Are you exporting to North America? Ask yourself these 3 questions:

• • Do you have a complete supply chain diagram from raw materials to finished products?

• • Do you maintain sales and purchase price records for at least 5 years?

• • Do you have a lawyer or legal consultant familiar with US trade law?

If the answer is no — don’t wait until you’re sued. Prepare today. Because trade defense is no longer “luck-based avoidance” — it’s a survival skill for every serious exporting business.