US imposes heavy tax on Vietnamese steel originating from China

The US Department of Commerce has just announced the application of a punitive tax of 265% on some steel products imported from Vietnam that originated from China.

According to AFP, imposing punitive tariffs on Vietnamese steel originating from China is one of a series of tough trade moves by President Donald Trump's administration to protect US goods and markets.

In most cases, China is the main target.

Steel imports from Vietnam to the US have increased sharply since Washington imposed anti-dumping duties on Chinese products two years ago. The US Department of Commerce accused Chinese businesses of evading the tax by routing their goods through Vietnam.

6 US steel manufacturers complain that Chinese steel is disguised as Vietnamese to evade taxes.

Since then, stainless steel from Vietnam to the US has jumped to $80 million/year from just $2 million/year; cold-rolled steel has increased from $9 million to $215 million/year - according to US Department of Commerce data.

In November, the European Commission's Anti-Fraud Office (OLAF) also discovered that Chinese steel was being transported through Vietnam and labeled "Made in Vietnam" to avoid being taxed under the bloc's regulations.

Returning to the US case, the anti-dumping tax applied to Vietnamese steel is only a temporary measure based on complaints from 6 US steel manufacturers. The US Department of Commerce will make a final decision in February 2018.

Vietnamese exporters can apply for exemption from this tax if they can prove that the raw materials used in production are not of Chinese origin.

Since President Donald Trump took office in January, Washington has escalated its trade war with Beijing, imposing anti-dumping tariffs on aluminum billet, plywood and many other Chinese goods.

Last week, Beijing reacted strongly when the US opened an anti-dumping investigation into Chinese aluminum alloy sheets, whose export value is up to hundreds of millions of dollars per year.

However, Mr. Trump's goal of reducing the trade deficit with China is still far away.

Figures released by the US Department of Commerce show that the US imported goods from China at a record high in October, pushing the deficit to 31.9 billion USD in the month./.

According to VOV