Southeast Asian fastener manufacturer Chin Well Holdings Bhd expects demand for its products to withstand U.S. tariff pressures, The Edge reports.

Several U.S. customers are auditing environmental, social and governance (ESG) compliance as well as capacity and quality at its production facility in Ho Chi Minh City, Vietnam, executive director Tsai Chia-ling told The Edge.

“They... should start ordering early next year,” she said.

The U.S. has threatened to raise import tariffs on Malaysian goods to 25% but left room to negotiate before enforcing the levies on August 1. The Trump administration has also separately raised the tariff on steel and aluminum imports to 50% from 25% beginning June 4.

Based in Penang, Chin Well mainly exports its carbon steel bolts, nuts, and screws. Europe and North America together made up 60% of its markets, followed by Malaysia at 30%.

Chin Well manufactures and supplies fasteners for highway guard rails, power transmission towers, furniture and other applications. Fasteners make up 75% of the company’s revenue.

More worrisome than tariffs is the European Union’s carbon tax scheduled to take effect in January 2026 and its impact on a company that produced tens of thousands of tons of steel products, said Tsai.

“How will the carbon tax be calculated and paid? The tax will influence orders and shipment,”she said.

The EU has a carbon border adjustment mechanism that imposes a carbon price on goods to level the playing field between foreign and European producers who might otherwise shift production elsewhere.