Việt Nam steel hit by US anti-dumping duties

Việt Nam steel hit by US anti-dumping duties

The tariff imposition could cause a double shock for Việt Nam’s steel industry.

Corrosion-resistant steel is used to build automobiles, appliances and buildings. Photo vnbusiness.vn

The US Department of Commerce on Tuesday delivered a heavy blow to the nation's steel exports, issuing final affirmative determinations in its anti-dumping and countervailing duty investigations into corrosion-resistant steel (CORE) imported from ten countries and territories, including Việt Nam.

"Commerce made its final determinations that imports of CORE into the US from ten trading partners were being dumped and/or subsidised," the department said.

The decision affects CORE products — vital in the manufacture of automobiles, appliances and buildings — worth US$2.9 billion imported from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan (China), Turkey, the United Arab Emirates, and Việt Nam.

While these determinations by the Department of Commerce confirm unfair trade practices, the process is not yet over. The US International Trade Commission (ITC) must now determine whether these imports have materially injured the domestic steel industry. If the ITC issues an affirmative, trading partner-specific finding, the US will formally impose anti-dumping and countervailing duties on the affected steel imports.

For Việt Nam, the potential imposition of tariffs threatens a double shock. Firstly, the US remains a crucial export destination for Vietnamese steel, contributing significantly to the sector’s overall turnover. The imposition of duties could erode Việt Nam’s price competitiveness, reduce future orders, and force firms to urgently seek alternative markets.

Secondly, the ruling underscores a broader trend of protectionism in global steel markets. As major economies ramp up trade defence measures to shield domestic industries, Vietnamese steel — buoyed by strong export growth in recent years — is increasingly vulnerable to anti-dumping and subsidy investigations, not only from the US but also from other trade partners.

This latest development not only disrupts the international steel supply chain but also serves as a warning for Vietnamese manufacturers: diversify export destinations, enhance product standards, and brace themselves for a rising tide of trade barriers. 

Bizhub