Vietnam imposes a five-year tariff on imported hot-rolled steel from China.
In a move aimed at protecting its domestic steel industry from unfair competition, Vietnam has officially imposed anti-dumping duties on hot-rolled steel imports from China. The tariffs, ranging from 23.1% to 27.83%, will be in effect for a period of five years, starting July 6, 2025.
The decision follows a rigorous government investigation conducted by the Ministry of Industry and Trade (MOIT) from mid-2024 to early 2025. The investigation found evidence of dumping—that is, the selling of steel at unfairly low prices—of Chinese hot-rolled steel in the Vietnamese market, causing substantial injury to local manufacturers.
Initially, Vietnam imposed provisional anti-dumping duties in March 2025, ranging from about 19.38% to 27.83%. Following the confirmation of ongoing damage to the domestic industry, these duties were made definitive and extended for five years. The taxed products include flat-rolled steel or alloy steel, hot-rolled, with specific thickness and width, unprocessed surfaces, and carbon content not exceeding 0.3%.
The tariffs are designed to restore market balance and ensure a fair trading environment for Vietnamese steelmakers. By curbing the dumping of Chinese hot-rolled steel, the duties aim to mitigate the impact of cheap imports, safeguard domestic production capacity, and promote fair trade practices.
This action aligns with broader global trends of increasing protectionist measures against Chinese steel exports, as China exported a massive 110.7 million tons of steel in 2024 amid over 30 trade defense investigations worldwide. The move also coincides with rising U.S. pressure on anti-dumping enforcement and transshipment issues involving Chinese steel.
Interestingly, an investigation also revealed dumping practices among Indian exporters, but the proportion of imports from India was under 3%. As a result, Indian products were excluded from the scope of the anti-dumping duties. Goods such as stainless steel or hot-rolled plate steel were also excluded from the tariffs.
The investigation into hot-rolled steel from China was launched by the Ministry of Industry and Trade in July 2024, following a petition from Hòa Phạ́t Dung Quá̛t Steel Company and Hưng Nghiệ̂p Formosa Hà Tĩnh Steel Corporation - two enterprises representing the domestic industry. The investigation period was set from July 1, 2023, to June 30, 2024, during which the impact of dumping on the Vietnamese steel industry was assessed.
The anti-dumping duties on certain Chinese-origin hot-rolled steel products range from 23.1% to 27.8%, providing a significant barrier to imported steel from China. The provisional duties, ranging from 19.3% to 27.8%, were applied on certain Chinese hot-rolled steel products before the official imposition in February 2025.
In conclusion, Vietnam's five-year anti-dumping duties on Chinese hot-rolled steel are a response to the findings of a thorough government investigation that uncovered evidence of dumping causing harm to domestic producers. The tariffs aim to protect local industry, promote fair competition, and respond to broader global trade tensions involving Chinese steel exports.
- The move towards implementing anti-dumping duties on certain Chinese-origin hot-rolled steel products is not only a response to the findings of a thorough government investigation in Vietnam, but it also aligns with broader global trends of increased protectionist measures against Chinese steel exports.
- In the realm of science and environmental-science, it's essential to recognize that these tariffs are designed to restore market balance and ensure a fair trading environment for Vietnamese steelmakers, thereby safeguarding domestic production capacity and promoting fair trade practices.
- The decision to impose these anti-dumping duties could have significant implications for the international trade law, particularly in relation to AI-driven trade analysis and potential retaliatory actions from China in response to these protective measures.
