Vietnam Imposes Tariffs on Chinese Steel to Protect Domestic Industry

Vietnam has announced the imposition of temporary anti-dumping duties on hot-rolled coil (HRC) steel imported from China, ranging from 19.38% to 27.83%. The decision, effective from March 8, aims to safeguard the domestic steel industry from the surge in Chinese steel exports. The Ministry of Industry and Trade (MoIT) stated that the investigation confirmed the existence of dumping practices by Chinese steel producers, leading to the implementation of these tariffs.

The ministry's investigation found that Chinese steel imports had increased significantly, with Vietnam importing 12.6 million tons of hot-rolled steel from China last year, up 33% from 2023. Despite the ministry's launch of an investigation in July 2024, steel imports from China continued to rise sharply, raising concerns about potential disruption to the domestic market. In response, the ministry decided to implement temporary anti-dumping duties to control the import increase and safeguard the domestic steel industry.

The decision to impose tariffs on Chinese steel aligns with 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.

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.

In conclusion, Vietnam's decision to impose tariffs on Chinese steel is a strategic move to protect its domestic steel industry from the surge in Chinese steel exports. The temporary anti-dumping duties will help to control the import increase and safeguard the domestic steel industry in the short term. In the long term, the tariffs may have a more significant impact on the domestic steel industry, potentially leading to increased production and employment in the sector. However, the overlapping tariffs from the U.S. and Vietnam could further strain Vietnam’s steel sector and potentially impact the competitiveness of Vietnamese steel exports in the global market.