In a decisive step to protect its domestic steel industry, Vietnam has rolled out temporary anti-dumping tariffs on galvanized steel imports from China and South Korea, effective April 16, 2025. The announcement, made by Vietnam’s Ministry of Industry and Trade on April 1, imposes levies of up to 37.13% on certain Chinese steel products and up to 15.67% on select South Korean imports. These measures, set to last 120 days, underscore Vietnam’s growing resolve to counter what it perceives as unfair trade practices flooding its market with cheap steel.
The tariffs come on the heels of mounting pressure from Vietnam’s Steel Association, which in late February urged the government to act against the rapid influx of galvanized steel from its northern neighbor and South Korea. According to the association, imports from these two countries accounted for 64% to 67% of Vietnam’s total galvanized steel imports between 2022 and 2023, putting significant strain on local producers. The new duties build on earlier actions, such as the temporary tariffs of up to 27.83% imposed on Chinese hot-rolled steel in March, reflecting a broader strategy to safeguard an industry critical to Vietnam’s economic growth.
China, the world’s largest steel producer, faces the steepest penalties, with industry giants like Baoshan Iron & Steel hit by the maximum 37.13% rate. However, exemptions have been granted to firms like Boxing Hengrui New Material and Yieh Phui Technomaterial, suggesting a nuanced approach to enforcement. South Korea’s Hyundai Steel will see a 13.7% tariff, while other manufacturers face 15.67%, with exceptions for major players like POSCO, KG Dongbu Steel, and Dongkuk Coated Metal. These distinctions highlight Vietnam’s effort to balance trade relations while addressing domestic concerns.
The backdrop to this move is a complex web of global trade dynamics. Vietnam’s steel imports from China alone were valued at nearly $12 billion last year, with hot-rolled steel imports surging to 8.8 million tons in the first nine months of 2024—72% of which originated from China. This flood of low-cost steel has sparked fears of market distortion, prompting Hanoi to act. Meanwhile, the U.S. imposition of 25% tariffs on all steel imports, effective March 4, 2025, adds another layer of pressure, as Vietnam navigates its own export challenges amid Washington’s existing anti-dumping measures on Vietnamese steel.
For Vietnam, a nation increasingly assertive in regional trade, these tariffs signal more than just economic protectionism—they mark a stand against perceived market manipulation by larger economies. The 120-day window offers a testing ground: will these measures bolster local producers like Hoa Sen Group and Formosa Ha Tinh Steel, or will they strain ties with key trading partners? As global trade tensions simmer, Vietnam’s latest gambit could inspire other Southeast Asian nations to follow suit, reshaping the steel trade landscape in the region.
Yet, the clock is ticking. With the tariffs set to expire in mid-August unless extended, Vietnam must weigh the economic benefits against potential retaliation from China and South Korea. For now, this bold stroke paints Vietnam as a player ready to defend its turf in an increasingly contentious global market.
