Detailed Overview of U.S. Anti-Dumping Duty Decision on Vietnamese Coated Steel
In a recent move, the U.S. Department of Commerce has imposed preliminary anti-dumping duties on coated steel imports from several countries, with Vietnam being among the most affected. These duties range from 39.84% to 88.12%, depending on the producer. The decision follows an ongoing investigation initiated in September 2024 after U.S. steel producers filed complaints accusing certain foreign producers of unfair pricing practices in the U.S. market.
For Vietnam, the preliminary anti-dumping duties are divided among several steel manufacturers:
• Hoa Sen Group has been assigned an anti-dumping rate of 59%.
• Hoa Phat Group, Nam Kim Steel JSC, and Southern Steel Sheet Co. Ltd. are facing a rate of 49.42%.
• Ton Dong A Corporation is projected to face the lowest rate of 39.84%.
For other Vietnamese steel manufacturers not directly named in the investigation, the anti-dumping rate is set at a high 88.12%, which could severely impact the competitiveness of Vietnamese coated steel in the U.S. market.
This move has the potential to disrupt the Vietnamese steel industry, especially considering that the U.S. is one of Vietnam’s key export destinations for coated steel. The duties are part of an ongoing trend in the U.S. trade policy, which aims to protect its domestic industry from what it deems unfair trade practices.
Impact on Vietnamese Steel Exports and Industry Response
In 2022, the U.S. imported $626 million worth of coated steel from Vietnam, with imports peaking at $751 million later that year. However, in 2023, imports sharply fell to $241 million, illustrating the immediate effect of increasingly stringent trade policies. The fluctuation in import volumes signals the growing pressure on Vietnamese steel manufacturers to adapt to these evolving market conditions.
The Vietnamese steel sector is concerned about the potential for further declines in export volume due to these high duties. A leader of one of the Vietnamese steel manufacturing groups has stated that the industry is evaluating various strategies to mitigate the impact of these tariffs. These could include exploring alternative markets, adjusting production practices, or attempting to navigate legal channels to challenge the imposition of such tariffs.
Currently, the DOC has not disclosed the exact surrogate values and methods used to calculate the dumping margins, leaving the Vietnamese steel producers in limbo. These details are expected to be revealed soon and will serve as the basis for any legal rebuttals and countermeasures that might be taken by the affected producers.
Other Countries Affected by U.S. Anti-Dumping Investigation
While Vietnam faces some of the highest duties, other countries and territories have also been named in the preliminary ruling. Coated steel from countries like Australia, Brazil, Canada, Mexico, South Africa, the Netherlands, Taiwan, Turkey, and the UAE are all subject to the DOC’s preliminary anti-dumping duties. However, most of these markets face lower duties than Vietnam’s steel producers. For instance:
• Brazil has been slapped with a general tariff rate of 118.63% on its coated steel.
• In Taiwan, three manufacturers are subject to a rate of 67.9%.
The high duties placed on Brazilian and Taiwanese producers have caused alarm in these markets as well, given the ripple effect that such tariffs can have on global trade, pricing, and market competitiveness.
Preliminary Investigation and Timeline for Final Decision
The DOC's preliminary decision on anti-dumping duties is only the first step in a lengthy investigation. The final decision is scheduled for August 18, 2025, with the U.S. International Trade Commission expected to announce its final determination in October 2025. If the findings are upheld, these tariffs will likely be officially applied, marking a significant shift in the dynamics of global steel trade.
The preliminary investigation was prompted by complaints from U.S. steel producers who argued that certain foreign producers were selling coated steel in the U.S. market at prices lower than fair market value, effectively undercutting domestic prices. This claim of “dumping” has long been a key issue in global trade and often leads to retaliatory tariffs designed to protect local industries.
Legal and Strategic Responses from Affected Manufacturers
In response to these developments, the affected Vietnamese steel manufacturers are considering various legal strategies and alternative market approaches. As the DOC is set to release more details about the calculation of dumping margins, Vietnamese producers will be scrutinizing the data closely to formulate legal rebuttals.
In the meantime, there is growing concern within the Vietnamese steel sector regarding the long-term effects of these duties on price competitiveness in the U.S. market. Several manufacturers are looking to adjust their production and sales strategies, possibly by shifting their focus to other international markets that have less stringent tariffs or by diversifying their product offerings.
Key Takeaways
• Preliminary Anti-Dumping Duties: The U.S. has announced anti-dumping duties on Vietnamese coated steel ranging from 39.84% to 88.12%.
• Impact on Vietnamese Producers: Hoa Sen Group faces 59%, while Hoa Phat Group and others are at 49.42%, with Ton Dong A Corporation facing 39.84%.
• Other Countries Affected: Countries like Brazil and Taiwan also face high anti-dumping duties, with Brazil at 118.63% and Taiwan at 67.9%.
• Investigation Background: The investigation started in September 2024 after complaints from U.S. steel producers about unfair pricing in the market.
• U.S. Imports Decline: Vietnamese coated steel imports to the U.S. dropped from $751 million in 2022 to $241 million in 2023 due to stricter trade policies.
• Final Decision Timeline: The final ruling will be made by the DOC on August 18, 2025, followed by the U.S. International Trade Commission's conclusion in October 2025.
• Industry Response: Vietnamese producers are exploring legal challenges and strategies to cope with these tariffs, focusing on alternative markets and adjusting production methods.
As the trade war around coated steel intensifies, the Vietnamese steel sector is navigating a complex and uncertain future, looking for ways to adapt to the new U.S. tariffs and protect their market share.
