HANOI/BEIJING: In a strategic move to safeguard its domestic steel industry, Vietnam is set to impose a temporary anti-dumping tariff of up to 27.83% on select steel products from China. This decision, confirmed in a trade ministry document seen by Reuters, is set to take effect on March 7 and will remain in place for 120 days.
The tariff will specifically target hot-rolled steel products, a key import in Vietnam’s steel market. Among the companies most impacted by the tariff are China’s major steel producers, Baoshan Iron & Steel and Maanshan Iron & Steel, who will face the full 27.83% duty. Meanwhile, Guangxi Liuzhou Iron and Steel Group will see a slightly lower rate of 19.38%. Notably, hot-rolled steel products from India will not be subject to the new anti-dumping measures, providing a window of opportunity for Indian steel exporters.
This move comes after a months-long investigation, launched in July 2024, following complaints from local producers who argued that Chinese steel was being sold at unfairly low prices. The Vietnamese government highlighted that, between January and September last year, nearly 8.8 million tons of hot-rolled steel were imported, with 72% of that coming from China. The value of steel and related products imported from China in 2024 exceeded $12 billion.
Vietnam’s actions also follow a broader global trend of steel protectionism. Earlier this month, the United States announced a 25% tariff on all steel imports, effective March 4, intensifying international trade tensions. Additionally, the U.S. has previously imposed anti-dumping duties on several Vietnamese steel exports, in some instances exceeding 25%.
The impact of these tariffs remains uncertain, as it is unclear whether the new U.S. measures will be layered on top of existing anti-dumping duties. However, the overlapping tariffs could further strain Vietnam’s steel sector, which has already been hit hard by international trade measures.
As trade tensions between major steel-producing nations intensify, the future of global steel markets will likely continue to be shaped by protectionist policies to ensure fair competition. The outcome of these tariff battles could have significant implications for trade flows, market prices, and the global steel industry.