US puts massive duties on Vietnamese steel originating from China

11 December 2017

Earlier in the week, US Commerce Department imposed heavy duties on some steel imports from Vietnam, saying they were produced with Chinese material already subject to retaliatory penalties.

US Commerce Department said in a statement on Tuesday, that some of the steel products imported from Vietnam will be subject to US punitive duties of up to 265% of their value. The products in statement referred were processed in Vietnam to be made corrosion resistant or cold-rolled for use in autos or appliances, the Commerce Department agreed with the claims of American producers that as much as 90% of the product’s value originated from China.

US imports from Vietnam have skyrocketed since the US imposed duties on the Chinese product two years ago, indicating companies are circumventing US duties by passing through Vietnam. Duties on the Chinese product were designed to compensate for product produced at below cost and dumped into the US market.

Since then, imports of corrosion-resistant steel from Vietnam have jumped to US$80 million a year from just US$2 million, while cold-rolled steel surged to US$215 million from US$9 million, according to the statement.