As per the market reports, the U.S. Department of Commerce has slapped steep import duties on steel products from Vietnam that originated in China after a final finding that they evaded U.S. anti-dumping and anti-subsidy orders.
This announcement amid the trade talks between Beijing and Washington reflects the wide array of strains in the relations of world’s two biggest trading economies.
The decision has marked a victory for U.S. steelmakers, who won anti-dumping and anti-subsidy duties against Chinese steel in 2015 and 2016 only to see shipments flood in from elsewhere. The industry has argued that Chinese products are being diverted to other countries especially from Vietnam to circumvent the duties.
The US Department of Commerce has directed U.S. customs authorities to collect anti-dumping duties of 199.76% and countervailing duties of 256.44% on imports of cold-rolled steel produced in Vietnam using Chinese-origin material.
The department will impose same anti-dumping and anti-subsidy rates on corrosion-resistant and cold-rolled steel coming from Vietnam that are applied on Chinese-made hot-rolled steel.
These duties will be applied in addition to the 25% import tariffs on steel announced by the Trump government in the month of Mar’18 under section 232 on the grounds of national security.
As per the market reports, Imports of cold-rolled steel from Vietnam rose from USD 9 million to USD 215 million and that of corrosion-resistant steel from Vietnam rose from USD 2 million to USD 80 million in time span of two years.
Although the steel subject to the latest anti-dumping and anti-subsidy duties was 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.
The decision followed a European Union finding in November that steel shipments from Vietnam into the EU also circumvented tariffs.
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