Preliminary Anti-Dumping Duties Imposed on Vietnamese Coated Steel
The U.S. Department of Commerce (DOC) recently announced preliminary anti-dumping duties on imported coated steel products from several countries, including Vietnam. These preliminary duties have been imposed following a thorough investigation, which was initiated after complaints were raised by U.S. steel manufacturers claiming that steel imports from Vietnam were being sold at unfairly low prices in the U.S. market.
Duty Rates for Vietnamese Steel Manufacturers
In particular, the duties on Vietnamese coated steel range from 39.84% to 88.12%, with Hoa Sen Group facing a preliminary rate of 59%. Other major Vietnamese steel producers such as Hoa Phat Group, Nam Kim Steel JSC, and Southern Steel Sheet Co. Ltd. are under investigation and could be subject to tariffs as high as 49.42%. Meanwhile, Ton Dong A Corporation is currently projected to face the lowest duty of 39.84%. Additionally, any other Vietnamese steel manufacturers that were not specifically named in the investigation are set to be subject to the highest duty of 88.12%.
Investigation Timeline and Next Steps
The DOC’s preliminary decision was released on a Friday, and this is a significant step in the anti-dumping case that was initiated in September 2024. According to the DOC, these duties will remain in place until a final determination is made. The U.S. International Trade Commission (ITC) is expected to deliver its final ruling on whether these tariffs will be permanently applied by October 2025.
Impact of Anti-Dumping Measures on Global Steel Markets
The preliminary duties reflect the DOC’s findings that Vietnamese coated steel producers may have been selling their products at prices lower than fair market value in the U.S. market. The investigation, which was prompted by complaints from U.S. steel producers, highlights ongoing concerns about fair trade practices in the global steel industry. This move is part of a broader trend where countries like Australia, Brazil, Canada, Mexico, South Africa, Netherlands, Taiwan, Turkey, and the UAE also face similar anti-dumping duties, although most of these duties are less severe than those imposed on Vietnam. For instance, Brazil’s coated steel imports are subjected to a significant tariff of 118.63%, and certain manufacturers in Taiwan face duties as high as 67.9%.
Vietnamese Steel Producers Consider Adaptation Strategies
As the investigation continues, affected companies in Vietnam are reportedly considering various strategic measures to counter the impact of these high duties. According to sources, some of these measures include shifting production to other countries or seeking to adjust their pricing strategies to maintain their market presence in the U.S.
Awaiting Key Details for Legal Rebuttals
Currently, Vietnamese manufacturers are awaiting further details from the DOC regarding the methods and calculations used to determine the "dumping margins" that led to the preliminary duties. This information is crucial for the companies as they prepare their legal arguments and rebuttals against the imposed tariffs.
Trends in U.S. Imports of Vietnamese Coated Steel
According to data from the DOC, imports of galvanized steel from Vietnam have been highly volatile in recent years. In 2022, the U.S. imported approximately US$626 million worth of coated steel from Vietnam, which surged to US$751 million in the same year. However, the following year, the value of Vietnamese coated steel imports sharply declined to $241 million in 2023, primarily due to the increasing pressure from more stringent U.S. trade policies.
Looking Ahead: Final Decision Expected in August 2025
The final decision from the DOC is expected to come on August 18, 2025. Afterward, the U.S. International Trade Commission will review the case and offer its final determination on whether the anti-dumping tariffs will be enforced permanently. This ruling could have lasting effects on the competitiveness of Vietnamese steel in the U.S. market and could potentially change the landscape of international steel trade.
Key Takeaways:
• The U.S. has imposed preliminary anti-dumping duties on Vietnamese coated steel, ranging from 39.84% to 88.12%.
• Hoa Sen Group faces a rate of 59%, and other producers like Hoa Phat Group may face 49.42% tariffs.
• Ton Dong A Corporation faces the lowest duty of 39.84%.
• Vietnamese companies not named in the investigation will face the highest tariff rate of 88.12%.
• The investigation was triggered by complaints from U.S. steel producers about unfair pricing.
• Other countries, including Brazil, Taiwan, and South Africa, are also subject to similar duties, although some face lower rates than Vietnam.
• The final determination by the U.S. Department of Commerce is expected on August 18, 2025.
• Imports of Vietnamese coated steel to the U.S. have fluctuated significantly in recent years, with a sharp decline in 2023.
