Source: Scrap Monster
The U.S. Commerce Department announced its decision to impose duties of more than 400% in imports of steel from Vietnam. The decision follows investigation by the Commerce Department upon request by various domestic steelmakers including ArcelorMittal, Nucor Corp, U.S. Steel, Steel Dynamics, AK Steel and California Steel Industries.
The press release issued Tuesday states that duties of up to 456.23% will be charged on steel products, originally from South Korea and Taiwan, which are then shipped to Vietnam, and finally reaches the U.S. after minor processing. The decision is likely to escalate the trade conflict between the two countries, sources said.
The imports of steel products from South Korea and Taiwan are subject to duties with effect from December 2015 and February 2016. This has resulted in Vietnam becoming an intermediate destination for exports to the U.S, thereby circumventing existing duties on these products from the above two countries. The imports of corrosion-resistant steel products from Vietnam have skyrocketed to $933 million after imposition of duties on South Korea and Taiwan, as compared with the imports of $22 million before that.
Meantime, the Vietnamese authorities noted that it has already begun crackdown on Chinese manufacturers who reroute their goods for export to the U.S. via Vietnam in order to escape from higher import tariffs.