The U.S. Commerce Department is acting on a request by ArcelorMittal, U.S. Steel and other domestic steelmakers to investigate whether China is sneaking in dumped steel by way of Vietnam.
Domestic steelmakers are accusing China of ducking tariffs by rerouting shipments of steel through the Southeast Asian country.
"These attempts by China to circumvent the antidumping and countervailing duty orders just imposed on carbon steel products must be addressed swiftly or this behavior will undermine the remedial effects of the law that the U.S. steel producers and their workers so desperately need," the steelmakers said in a petition. "This type of behavior is becoming more frequent, so it is important that the U.S. Government send a strong message that circumvention of our trade laws will not be tolerated."
Cheap imports have gutted the steel industry in the United States, resulting in mill idlings and the layoffs of 19,000 steelworkers over the last few years. ArcelorMittal, U.S. Steel and other steel companies have responded with a flurry of trade cases, saying imports are subsidized and dumped below market value in violation of international trade laws.
Earlier this year, the International Trade Commission imposed tariffs of up to 266 percent on corrosion-resistant carbon steel and cold-rolled carbon steel from China. ArcelorMittal, U.S. Steel and other companies say China got out of paying the tariffs by simply sending the steel for processing to Vietnam, which in turn sent it to the United States.
Imports from Vietnam totaled 121,000 net tons in October, a 23 percent year-over-year increase, according to the American Iron and Steel Institute.
Source: NwiTimis